Measures of economic growth Flashcards
1
Q
What is long run economic growth?
A
The expansion of the economy’s capacity to produce goods and services
2
Q
What is short run growth?
A
The increase in GDP over a given period of time
3
Q
Why do we measure GDP?
A
Living standards
Policy decisions
Determine government spending
4
Q
What is GNI?
A
GDP as well as income and dividends from other countries
