Economic Growth

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  • Economic Growth
    • What is economic growth?
      • the annual rate of increase in real GDP which is the production of the countries goods and services at market price
    • Why is growth important?
      • Could lead to higher wages for employees
      • Usually firms experience higher profits in this time
      • Improvement in standard of living
      • Unemployment is reduced
      • Benefit country's economy & society
      • Untitled
    • How is Economic Growth measured?
      • volume: adding up the quantity of goods and services produced in one year
      • Value: Calculating the value of goods and services produced in one year.
      • A Percentage
    • What is current economic growth performance?
      • 1st quarter of 2015 - 0.3%
      • 0.6 - last quarter of 2014
      • Fallen steadily since last quarter of 2013
    • How is growth aided?
      • Supply side policies that increase potential for economic growth
        • investment
        • Training
        • Innovation
      • through governments creating economic stability
      • Encouraging immigration
    • Obstacles to increase in AD
      • Consumption Obstacles
        • Low income/ disposable income
        • High interest rates
        • High taxes
        • High unemployment
      • Investment Obstacles
        • High level of risk
        • Low business confidence
        • High interest rates
      • Government Spending Obstacles
      • Balance of Payments Obstacles
        • The exchange rate: Cheaper pound
        • The world economy
      • Absence of capital markets
      • Corrupt government
      • Population  reduction
      • infrastructure


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