Economic growth Flashcards
1
Q
What are the types of economic growth and how can we identify them on the AD-AS graph?
A
- actual growth: a rise in real GDP (via the shift of AD curve)
- potential growth: a rise in potential GDP (via the shift of the AS curve)
2
Q
How can we attain sustained economic growth?
A
sustained economic growth is a combination of actual economic growth and potential economic growth
3
Q
What are the pre-requisites for inclusive growth?
A
sustained economic growth + improvement in income inequality
4
Q
What are the prerequisites for sustainable growth?
A
sustained econnomic growth + improvement in environment
