Causes of economic growth

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  • Created by: Jade
  • Created on: 13-12-12 11:50
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  • Causes of economic growth
    • Short run
      • An economy with spare capacity  - economic growth by an increase in AD
        • E.g. a fall in the exchange rate - may increase net exports - result in export led growth
        • Or consumption led growth,may be caused by a cut in income tax or rise in consumer confidence
    • Long run
      • The productive capacity has to increase.
        • Increases in the quantity of quality of resources
          • E.g. advances in technology, improvements in education and training

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