Economic Growth

Question 0

Short run economic growth

Answer 0

Produce more, better utilization of resources. Increase in GDP

Also called actual economic growth.

Question 1

Long run economic growth (and other names)

Answer 1

Increase in ability to produce more, PPC moves outwards. Increase in productive potential (the maximum output an economy can produce)
Also called potential growth or genuine.

Question 2

Causes of short (actual) economic growth (4):

Answer 2

Rise in incomes of other countries (more export)
More borrowing less saving (more spending)
More consumer confidence
Lower tax (more disposable income)
Rise in aggregate demand

Question 3

Causes of long (potential/genuine) economic growth (3):

Answer 3

Finding more resources (increase in productive potential)
Advances in technology (increase in productive potential)
Infrastructure spending (creates more employment)

Question 4

Benefits of economic growth (7)

Answer 4

Higher tax revenue (better education, better healthcare, wider range of life choices)
Can create secure environment
Raise life expectancy
Rise in general material standard of living.
Potential Increase in employment
Elimination of poverty
Rise in international status

Question 5

Negatives of economic growth (3):

Answer 5

Negative externalities (too many goods available e.g. Obesity, alcoholism) 
Growth can be unsustainable (depletion of resources, too much debt, too much borrowing) 
Growth does not guarantee equity (small group of very rich, large group of very poor)