Economic growth Flashcards
1
Q
Outline what is meant economic growth
A
Economic growth is real growth in the value of goods and services produced by an economy over time
2
Q
Explain how economic growth is calculated
A
Real GDP (period2) - real GDP (period1) divided by real GDP (period1) multiplied by 100
3
Q
Discuss the pros of economic growth as a measure of economic performance
A
Pros are because you can see when the economy is doing well and when it is underperforming.
4
Q
Discuss the cons of economic growth as a measure of economic performance
A
Cons are because the economy could be doing well in a country, but the standard of living could be bad.
