Causes of economic growth
- 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
- An economy with spare capacity - economic growth by an increase in AD
- 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
- Increases in the quantity of quality of resources
- The productive capacity has to increase.
- Short run
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