Economic Growth
- Created by: Chargeorgexx
- Created on: 10-09-15 14:55
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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
- Supply side policies that increase potential for economic growth
- 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
- Consumption Obstacles
- What is economic growth?
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