Economic growth and the Economic Cycle

HideShow resource information
Define Economic growth
Economic growth is a long term expansion of a country's productive potential.
1 of 5
Define short term economic growth.
Annual % change in real national output. Driven by the levels of aggregate demand. AD = C + I + G + (X-M)
2 of 5
How can an increase in LRAS curve be illustraded ?
By an outward shift of the PPF curve.
3 of 5
Why is economic growth depended on other countries ?
Inter-connected globalising world, economic growth does not happen in isolation.
4 of 5
What are the 4 Key drivers of growth ?
(1) Growth in physical capital stock - rise in capital per employee. (2) Growth in the size of the active labour force - increases labour productivity. (3) Growth in quality of labour (human capital). (4) Technological progress
5 of 5

Other cards in this set

Card 2

Front

Define short term economic growth.

Back

Annual % change in real national output. Driven by the levels of aggregate demand. AD = C + I + G + (X-M)

Card 3

Front

How can an increase in LRAS curve be illustraded ?

Back

Preview of the front of card 3

Card 4

Front

Why is economic growth depended on other countries ?

Back

Preview of the front of card 4

Card 5

Front

What are the 4 Key drivers of growth ?

Back

Preview of the front of card 5

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Economic growth and the Economic Cycle resources »