Economic Growth
- Created by: biebsswaguk
- Created on: 11-01-14 13:40
View mindmap
- measuring economic performance
- measuring growth
- Economic growth is a measure of an increase in REAL GDP
- GDP = The total amount of good and services produced in a country in a year, taking out inflation
- NORMINAL GDP: Measures the value of output of the final goods and services using current prices every three months
- potential economic growth: measure of the increase in capacity
- shown by an outwards movement in PPF
- measure of how efficient the economy is
- If the economy has two consecutive quaters of negative growth that it is in recession
- - less spending
- - less income and output in the economy
- unemployment rises and a fall in living standards
- Economic growth is a measure of an increase in REAL GDP
- Changing living standards
- increase in GDP causes an increase in standards of living
- people can afford more goods and services
- feel that their lives are better
- dont need to work as hard to achieve the requirements for life
- a rise in income doesn't always make standards of living better
- how the money is distributed
- if inflation has been taken into account
- amount spent on investment and long term social benefits
- population
- better to look at GDP Per capita
- is the total GDP divided by the population. It gives a better indicator of incomes
- better to look at GDP Per capita
- STANDARD OF LIVING: measure of quality of life
- increase in GDP causes an increase in standards of living
- measuring growth
Comments
No comments have yet been made