economic growth Flashcards
economic growth definition
an increase in the production of economic goods and services, compared from a period of time to another
economic growth goal
- unemployment around 5%
- price stability inflation 2%
- balance between imports and exports
economic growth formula
growth rate 2023
real GDP23 - real GDP22
———————————– x100
real GDP22
benefits economic growth
- higher incomes
- reduced poverty
- better education
- increased life expectancy
- improvement in government finance
consequences of economic growth
- inequalities
- envirement consequences
- structural unemployment
main sources of economic growth
they are often defined as the “three pillars of economic growth”
1) physical capital accumulation
- investments in infrastructure
- capital investments(machinery)
2) human capital development
- education and training
- healthcare
3)Technological Progress and Innovation
- research and development
- adoption of technology
government dept
gini coefficient
measures income distribution across a population. it often serves as a gauge of economic inequality
The co-efficient ranges from 0 (or 0%) to 1 (or 100%), with 0 representing perfect equality and 1 representing perfect inequality.
HDI
- human development index
- measure various countries’ levels of social and economic development
- years of schooling, expected years of schooling, life expectancy at birth, and gross national income (GNI) per capita.
GDP definition
the total market value of all finished goods and services from a period of time to another
GDP formula
GDP = C + I + G + (X-M)
rates italy and germany
italy
