Economic growth Flashcards
Macroeconomics
Study of large economic systems such as those of a while country or area of the world
Microeconomics
Study of small economic systems that are part of national or international systems
Economic growth
Increase in the level of output by a nation
GDP
Growth domestic product where the market value of goods and services are produced in a period (usually yearly)
Boom
peak of economic cycle where GDP grows at its fastest
how is Economic growth measured
GDP
Recession
period of temporary economic decline
national income
the value of income,output and expediture over a period of time
list and explain the limitations of GDP
-inflation
-statistical errors
-external cost
-home produced goods
downturn
period in the economic cycle where GDP grows but more slowly
Slump
bottom of economic cycle where GDP falls and unemployment rises
recovery
where gap rises again
how does economic growth impact employment
employment increase and economic growth increase as there will be more jobs available
how does economic growth impact poverty
poverty will decrease as economic growth increase as people will have more chances of getting a job which will increase their output
how does economic growth impact productive potential
economic growth can rise productive potential of a country; meaning a country can produce more goods and services (PPC)
