Economic Growth Flashcards
1
Q
what defines economic growth?
A
An increase in GDP over 2 consecutive quarters, expressed as a %
2
Q
What is short run growth
A
Shift right of AD
3
Q
what is long run growth
A
Shift right of AS
4
Q
What is the UK growth?
A
3% growth
5
Q
what is China’s growth
A
7%/8%/9%
6
Q
What are benefits?
A
Higher average incomes, lower unemployment, improved public services, higher tax revenues etc…
7
Q
what are costs?
A
Inflation, boom+ bust cycles, current account deficit, environmental costs, inequality, problems of affluence
