Economic Growth 0.0 / 5 ? EconomicsEconomic GrowthIGCSEEdexcel Created by: tsalomrobertsCreated on: 03-02-21 16:49 What is Economic Growth The increase in the level output by a nation 1 of 9 How do we measure economic growth Gross domestic product. It is the market value of all final goods and services. Measured worldwide 2 of 9 What are the limitations of GDP Inflation. Population changes Statistical Errors. Value of home-produced goods. Hidden economy. GDP and living standards. External costs. 3 of 9 What are the four phases of the economic cycle Boom. Downturn. Recession. Recovery. 4 of 9 Impact of Boom on growth, employment, and inflation Peak of cycle. GDP is growing fast. Demand is rising, jobs etc. Prices may rise. 5 of 9 Impact of Downturn on growth, employment, and inflation After boom. slower economic growth. demand stops growing, unemployment rise. 6 of 9 Impact of Recession or Depression on growth, employment, and inflation Bottom of cycle GDP starts to fall. Widespread poverty. Demand falls, unemployment rises. 7 of 9 Impact of Recovery on growth, employment, and inflation GDP starts to rise. Increase economic activity. Demand rises, unemployment falls 8 of 9 Impact of Economic Growth Employment. Standards of living. Poverty. Productive potential. Inflation. 9 of 9
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