3.1 - Economic Growth 4.0 / 5 based on 1 rating ? EconomicsEconomic GrowthEconomic Objectives and the Role of the GovernmentGCSEOCR Created by: emma_v17Created on: 30-04-18 10:17 What is Economic Growth? growth in GDP over time growth in value of output of country total value of output -> incomes: wages, profits, interest, rent value of output = total incomes economic growth = output and incomes rising brings rise in welfare - spending on hospitals 1 of 6 How is Economic Growth measured? rate of growth = change in GDP x 100 original GDP 2 of 6 What is GDP per capita? GDP divded by population average income of each person in the country used to measure standard of living 3 of 6 Determinants of Economic Growth quality & quantity of factors of production Increase in output, better infrastructure, ++ efficiency: Investment Changes in technology Education & training Labour productivity Size of the workforce Natural resources Government policies 4 of 6 Benefits of Economic Growth Rise in material living standards -> evry1 has more output 2 spend Reduction in poverty -> government have gr8er tax revenue - benefits Rise in welfare -> ++ health and education Rise in employment -> ++demand = ++employees 5 of 6 Costs of Economic Growth Environmental costs Air pollution Global warming Congestion Loss of non renewable resources Lower quality of life Inequality of income and wealth Inflation 6 of 6
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