Study sets matching "economic growth"

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Study sets matching "economic growth"

34 terms
Economic Growth
Income
Production
Leakages
Injections
Earned by those who have contributed to the production proces…
Refers to the total value of goods and services that are prod…
Income earned by economic agents that is directed away from t…
Income earned by economic agents that is directed to spending…
Income
Earned by those who have contributed to the production proces…
Production
Refers to the total value of goods and services that are prod…
10 terms
Economic growth
Economic growth
Aggregate demand
Business cycle
Inflation
An increase in real output as measured by real GDP or per cap…
C + I + G + (X-M)
It shows fluctuations in the level of economic activity in an…
A rise in the general level of prices in an economy.
Economic growth
An increase in real output as measured by real GDP or per cap…
Aggregate demand
C + I + G + (X-M)
10 terms
Economic Growth
Productivity
Economic Growth
Physical Capital
Human Capital
The ratio of the quantity and quality of units produced to th…
An increase in the maximum amount of goods and services an ec…
Human made good such as buildings and machines used to produc…
The improvement in labor created by the education and knowled…
Productivity
The ratio of the quantity and quality of units produced to th…
Economic Growth
An increase in the maximum amount of goods and services an ec…
15 terms
Economic Growth
Economic Development
Economic Growth
Gross Domestic Product
Short comings of economic growth
The sustained, concerted actions of policy makers that promot…
Phenomenon of market productivity and an increase in GDP, whi…
The measurement of the market value of all final goods and se…
Undeclared income that shows no affect on the GDP; non-taxed…
Economic Development
The sustained, concerted actions of policy makers that promot…
Economic Growth
Phenomenon of market productivity and an increase in GDP, whi…
26 terms
Economics - Growth
Nominal GDP
Real GDP
GDP (gross domestic product)
productive capacity
Is the value of all goods and services produced in a year, me…
Is nominal GDP adjusted for the changes in the price level, d…
is the value of all goods and services produced in the countr…
shows whether the country is able to increase the production…
Nominal GDP
Is the value of all goods and services produced in a year, me…
Real GDP
Is nominal GDP adjusted for the changes in the price level, d…
27 terms
Economic growth
Economic growth
National income
GDP
Growth rate
National income rising over time
Value of all incomes in the economy added together. Includes…
Gross Domestic Product
The amount by which GDP increases each year
Economic growth
National income rising over time
National income
Value of all incomes in the economy added together. Includes…
9 terms
Economic Growth
Growth Formula
Factors of Growth - Physical Capital
Factors of Growth - Human Capital
Factors of Growth - Natural Resources
y = y1 (1 + g)^t
Tools, factories, equipment
Education, health, etc
Oil, land, minerals, etc
Growth Formula
y = y1 (1 + g)^t
Factors of Growth - Physical Capital
Tools, factories, equipment
Economic Growth
growth
indicators
offset
output
increase or enlargement
data used to evaluate the current and future health of an eco…
something that balances or makes up for something else
the goods and services produced by an economy
growth
increase or enlargement
indicators
data used to evaluate the current and future health of an eco…
Economic Growth
GDP
Human capital
Capital goods
Entrepreneur
The total value of the goods and services produced in a count…
The education & skills people need to do their jobs well
The materials, machines, and other physical goods people need…
Someone that is a risk taker that starts their own business
GDP
The total value of the goods and services produced in a count…
Human capital
The education & skills people need to do their jobs well
21 terms
Economic Growth
GDP
Nominal GDP
Real GDP
Equation for real GDP
GDP is the value of all the goods and services produced in co…
Nominal GDP is the value of all goods and services produced i…
Real GDP is nominal GDP adjusted for the changes in the price…
Real GDP= Nominal GDP/Price index * base year price index
GDP
GDP is the value of all the goods and services produced in co…
Nominal GDP
Nominal GDP is the value of all goods and services produced i…
Economic Growth
Economic Growth
Deflationary Gap
Positive Consequences of Economic Growth
Negative Consequences of Economic Growth
Economic growth can be illustrated by a movement from a point…
An economy operating at the point showed on the right can be…
Sometimes economies can experience non-inflationary growth du…
Higher incomes can be caused by an increase in work capacity.…
Economic Growth
Economic growth can be illustrated by a movement from a point…
Deflationary Gap
An economy operating at the point showed on the right can be…
23 terms
Economic Growth
Economic growth
Measurement of E.G
Price stability
Full employment
the increase in capacity of an economy to satisfy the wants o…
GDP... Growth < 3% means unemployment will rise... Growth > 4% resu…
target rate for inflation is between 2-3%... inflation at this l…
when everyone who is wiling to work can find employment... no cy…
Economic growth
the increase in capacity of an economy to satisfy the wants o…
Measurement of E.G
GDP... Growth < 3% means unemployment will rise... Growth > 4% resu…
Economic Growth
Capital
Capital Expenditure
Capital Stock
Convergence
Physical and intellectual property that is utilized by labor…
Money spent on increasing the amount of capital in a firm or…
The total amount of capital in an economy or in a firm.
The theory that all industrialized countries tend to approach…
Capital
Physical and intellectual property that is utilized by labor…
Capital Expenditure
Money spent on increasing the amount of capital in a firm or…
18 terms
Economic Growth
Aggregate production function
capital deepening
compound growth rate
contractual rights
the process whereby an economy as a whole turns economic inpu…
an increase by society in the average level of physical and/o…
the rate of growth when multiplied by a base that includes pa…
the rights of individuals to enter into agreements with other…
Aggregate production function
the process whereby an economy as a whole turns economic inpu…
capital deepening
an increase by society in the average level of physical and/o…
76 terms
Economic Growth
Economic Growth
Measurement of Economic Growth and Sus…
3-4% Economic Growth Effects
<3% Economic Growth Effects
Increasing the capacity of the economy to satisfy the wants o…
Measured through GDP and Aus. economic growth is targeted at…
Targeted economic growth - Capacity to meet Macroeconomic obj…
Slow economic growth - inability to meet full employment - Bo…
Economic Growth
Increasing the capacity of the economy to satisfy the wants o…
Measurement of Economic Growth and Sus…
Measured through GDP and Aus. economic growth is targeted at…
12 terms
Economic Growth
Standard of Living
Economic Growth
Basic Percent Change Formula
Law of Increasing Opportunity Cost
-the level of overall well-being enjoyed by an individual, gr…
an increase in real gross domestic product or real gross dome…
((New-Old)/Old) x 100
a principle in economics which holds that since some resource…
Standard of Living
-the level of overall well-being enjoyed by an individual, gr…
Economic Growth
an increase in real gross domestic product or real gross dome…
Economic Growth
Define economic growth
Equation to calculate rate of economic…
Equation to calculate % change in real…
What is the meaning of ... (+) % change i…
An increase in real real GDP, or quantity of goods and servic…
change in GDP / initial GDP x 100
% change in real GDP - % change in population
real GDP is growing faster than the population... population is…
Define economic growth
An increase in real real GDP, or quantity of goods and servic…
Equation to calculate rate of economic…
change in GDP / initial GDP x 100
6 terms
Economic Growth
Definition of economic Growth
Short term economic growth
Long term economic growth
PPC curve full capacity note!!
An increase in real GDP over time
Is argued to be achieved by increases in the AD
Achieved through improvements in the quality and quantity of…
It will never operate on the PPC curve as there will always b…
Definition of economic Growth
An increase in real GDP over time
Short term economic growth
Is argued to be achieved by increases in the AD
Economic Growth
Economic Growth
Aggregate Demand
Aggregate Supply
Average Propensity to Consume (APC)
Refers to an increase in the volume of goods and services tha…
Refers to the total demand for goods and services within the…
Refers to the productive capacity of an economy, that is, the…
Refers to the proportion of total income that is spend on con…
Economic Growth
Refers to an increase in the volume of goods and services tha…
Aggregate Demand
Refers to the total demand for goods and services within the…
10 terms
Economic Growth
Standard of living
Economic Growth
production possibilities frontier (PPF)
law of increasing opportunity costs
The level of overall well-being enjoyed by an individual, gro…
growth of output (real gross domestic product) usually measur…
graph showing the maximum combinations of goods and services…
As the amount of a product produced is increased the opportun…
Standard of living
The level of overall well-being enjoyed by an individual, gro…
Economic Growth
growth of output (real gross domestic product) usually measur…
Economic Growth
economic growth
factors causing economic growth
negative output gap
positive output gap
the expansion of the productive potential of the economy show…
-increased AD... -improved labour force... -improved technology... -mo…
-actual level of output<potential level... -downward inflationar…
-actual level of output>potential level... -upward inflationary…
economic growth
the expansion of the productive potential of the economy show…
factors causing economic growth
-increased AD... -improved labour force... -improved technology... -mo…
15 terms
Economic Growth
Economic growth
Real GDP
Nominal GDP
GDP per capita
The increase in real GDP over time
The value of all goods and services in an economy over a year…
The value of all goods and services in an economy over a year…
The money value of the volume of output of goods and services…
Economic growth
The increase in real GDP over time
Real GDP
The value of all goods and services in an economy over a year…
9 terms
Economic Growth
Industrial Revolution
Capitalism
Capital
Free Enterprise
Period of great change in the way goods were made that began…
Economic system in which individuals invest in business in ho…
Money
Economic system in which people are free to buy, sell, and pr…
Industrial Revolution
Period of great change in the way goods were made that began…
Capitalism
Economic system in which individuals invest in business in ho…
Economic Growth
Economic Growth
Gross Domestic Product
Aggregate demand
Aggregate Supply
The increasing capacity of the economy to satisfy the wants o…
The value of goods and services produced in an economy over a…
The total demand for goods and services within the economy.
The total productive capacity of an economy.
Economic Growth
The increasing capacity of the economy to satisfy the wants o…
Gross Domestic Product
The value of goods and services produced in an economy over a…
6 terms
Economic Growth
Aim of Economics
Material LS
Non-material LS
Economic Growth goal
To maximise living standards by using resources in the most e…
Reflect our income& access to G&S
Reflects our 'quality of life' eg. Happiness, self-esteem, cr…
3-4% a year
Aim of Economics
To maximise living standards by using resources in the most e…
Material LS
Reflect our income& access to G&S
Economic Growth
Economic Growth
Rule of 70
Number of Years to Double
Labor Productivity
Attmepts to measure change of living standard; measured by th…
Determines how long it will take for long term growth rate to…
70/growth rate
The quantity of goods and services that can be produced by on…
Economic Growth
Attmepts to measure change of living standard; measured by th…
Rule of 70
Determines how long it will take for long term growth rate to…
11 terms
Economic Growth
Economic development
Factor shares
In theory, in a competitive economy a…
Growth accounting estimates...
measures overall improvement in living standards and quality…
proportions of national income used to pay for the capital an…
-Labor will be addd as long as MPL exceeds the wage rate.... -Ca…
the percentage of an economy's growth rate that can be explai…
Economic development
measures overall improvement in living standards and quality…
Factor shares
proportions of national income used to pay for the capital an…
12 terms
Economic growth
potential economic growth
actual economic growth
economic growth
business cycle
An expansion of the productive capacity of the economy.
Movement towards expansion ie. economy recovering from a peri…
A shift in the LRAS curve to the right.
Whereby GDP fluctuates around its underlying trend, following…
potential economic growth
An expansion of the productive capacity of the economy.
actual economic growth
Movement towards expansion ie. economy recovering from a peri…
Economic Growth
Natural Resources
Human Capital
Capital Goods
Entrepreneurship
All of the things found on Earth and is also called "Gifts of…
The skills,talents, education, and abilities that human worke…
All the goods that are produced in a country then used to mak…
People who provide the money to operate a business
Natural Resources
All of the things found on Earth and is also called "Gifts of…
Human Capital
The skills,talents, education, and abilities that human worke…
11 terms
Economic Growth
Economic Growth
Sustainable economic growth
Measure of Economic growth
Price stability
Increase in an economy's output over time. ... Can be depicted a…
Opportunities and living standards of future generations won'…
- Annual change in real GDP... - Aus. desirable growth ~ 3.5% p.…
When rates of inflation are low. - inflation adversely affect…
Economic Growth
Increase in an economy's output over time. ... Can be depicted a…
Sustainable economic growth
Opportunities and living standards of future generations won'…
12 terms
Economic Growth
Types of Economic Growth
What is Actual EG
What is Potential EG
Benefits of EG
Actual EG ... Potential EG
INCREASE in real national output actually produced... - Due to I…
INCREASE in full employment level of national output... - INCREA…
SINE... 1. Increase SOL... 2. Reduce Inequality in income distribut…
Types of Economic Growth
Actual EG ... Potential EG
What is Actual EG
INCREASE in real national output actually produced... - Due to I…
Economic Growth
% change GDP formula
historical perspective
Growth Theory
productivity
(GDP2 - GDP1)/GDP1 * 100
economic growth in a modern phenomenon
1. technology... 2. quantity of resources... 3. quality of resource…
input - to - output ratio
% change GDP formula
(GDP2 - GDP1)/GDP1 * 100
historical perspective
economic growth in a modern phenomenon
growth economics
Stocks
Secondary markets
why are secondary markets important
2 special debt instruments
ownership shares of a corporation
where securities are traded after their initial sale
greater demand (&higher price) for marketable securities... hel…
US Treasury Bonds &Home Mortgages
Stocks
ownership shares of a corporation
Secondary markets
where securities are traded after their initial sale
16 terms
Economic Growth
economic growth
real GDP per capita
rule of 70
modern economic growth
an increase in real GDP or increase in real GDP per capita
Real GDP / population
A method for determining the number of years it will take for…
the historically recent phenomenon in which nations for the f…
economic growth
an increase in real GDP or increase in real GDP per capita
real GDP per capita
Real GDP / population
30 terms
Economic Growth
Economic Growth
3 ways to define economic growth
Real income/GDP
Inflation
An increase in a countries output.
Real income, productive capacity, net social welfare
purchasing power of income generated from production
the value of money decreasing
Economic Growth
An increase in a countries output.
3 ways to define economic growth
Real income, productive capacity, net social welfare
Economic Growth
Economic Growth
Features
Continuous process
Increase in per capita income
Economic growth indicates the quantitative increase in nation…
1.Continuous process.... 2.Increase in per capita income.... 3.Long…
Continuous increase in the production of goods and services t…
Real income means a country's total output of final goods and…
Economic Growth
Economic growth indicates the quantitative increase in nation…
Features
1.Continuous process.... 2.Increase in per capita income.... 3.Long…
134 terms
Economic Growth
GPD
Nominal GPA
real GPD
economic growth
real gross domestic product
the total market value of all final goods and services produc…
nominal GDP adjusted for inflation, meaning the effects of pr…
a sustained rise over time in a nation's production of goods…
GPD
real gross domestic product
Nominal GPA
the total market value of all final goods and services produc…
12 terms
Economic growth
Extensive growth
Intensive growth
Mercantilist
Adam Smith
total income increases (Y)
per capita income increases (Y/N)
believe that wealth is an excess of money or real goods
wealth is not stuff, wealth is productivity
Extensive growth
total income increases (Y)
Intensive growth
per capita income increases (Y/N)
25 terms
Economic Growth
What is actual economic growth?
What is potential economic growth?
What is export-led growth?
How can growth be caused by AS?
An increase in real GDP.
An increase in the capacity of an economy
Economic growth caused by rises in exports. (Stimulates econo…
If AS increases. (For example if production costs are lower).
What is actual economic growth?
An increase in real GDP.
What is potential economic growth?
An increase in the capacity of an economy
Economic Growth
Growth rate of real GDP
growth rate of real per capita GDP
labor productivity
capital productivity
shows the extent to which the total output of the economy is…
shows the extent to which the economic well-being of the avg…
output per unit of labor (avg product of labor)
output per unit of capital (avg product of capital)
Growth rate of real GDP
shows the extent to which the total output of the economy is…
growth rate of real per capita GDP
shows the extent to which the economic well-being of the avg…
Economic Growth
What is standard of living?
Real GDP Per Capita
What is wrong with GDP per capita?
Why do we use GDP per capita?
Economist used standard of living to measure a country's econ…
Real GDP per capita is a measure of the average income per pe…
1. It doesn't measure fairness of distribution in income... 2. I…
GDP per capita is correlated with other better measures of we…
What is standard of living?
Economist used standard of living to measure a country's econ…
Real GDP Per Capita
Real GDP per capita is a measure of the average income per pe…
Economic Growth
Which unemployment rate do most econom…
Economists use gross national product…
This graph shows merchandise export da…
Economic growth takes place when a cou…
5 percent
the output of a nation's citizens, regardless of where they a…
China exported more goods than the United States from 2010 to…
produces more goods and services.
Which unemployment rate do most econom…
5 percent
Economists use gross national product…
the output of a nation's citizens, regardless of where they a…
27 terms
Economic Growth
What is the long-run average rate of g…
Real GDP per capita is
How does US growth generally compare w…
How does US growth generally compare w…
The long run average rate of growth in real GDP is % of growt…
Real GDP/ Population.
Rapid growth, high average income much like US.
Dramatic gains in living standards; China has been growing ra…
What is the long-run average rate of g…
The long run average rate of growth in real GDP is % of growt…
Real GDP per capita is
Real GDP/ Population.
Economic Growth
This graph shows changes in GDP and th…
Jim lost his job in a car assembly fac…
To help encourage economic growth, a c…
The circle graph shows information abo…
2009
structurally unemployed, unemployed
invest in research and development.
Most Germans work in services.
This graph shows changes in GDP and th…
2009
Jim lost his job in a car assembly fac…
structurally unemployed, unemployed
Economic Growth
What are the 4 main areas causing econ…
What are some examples of the 4 main a…
Why is more output not a cause of econ…
What does long term economic growth re…
1) Resources... 2) Investment... 3) Human Capital... 4) Physical Ca…
- More investment... - Better education... - Better training... - M…
Because it is simply a sign that the economy is growing. More…
- More stock... - Rise in the labour supply... - Improvements in…
What are the 4 main areas causing econ…
1) Resources... 2) Investment... 3) Human Capital... 4) Physical Ca…
What are some examples of the 4 main a…
- More investment... - Better education... - Better training... - M…
Economic growth
Economic growth
What causes economic growth (with refe…
How can in increase in AD bring about…
Growth rate=
An increase in real GDP over time
Increase in the quality (productivity) or quantity of the fac…
If the economy's resources are not used to the fullest extent…
(Real GDP in year 2 - real GDP in year 1)/real GDP in year 1…
Economic growth
An increase in real GDP over time
What causes economic growth (with refe…
Increase in the quality (productivity) or quantity of the fac…
Economic Growth
Economic growth is best defined as an…
Real GDP per capita is found by: ... A. a…
Real GDP per capita: ... A. cannot grow m…
Which of the following best measures i…
A
C
D
C
Economic growth is best defined as an…
A
Real GDP per capita is found by: ... A. a…
C
20 terms
Economic Growth
Industrial Revolution
Economic Growth Model
Labor Productivity
Technological Change
The application of mechanical power to the production of good…
A model that explains growth rates in real GDP per capita ove…
The quantity of goods and services that can be produced by on…
A change in the quantity of output a firm can produce using a…
Industrial Revolution
The application of mechanical power to the production of good…
Economic Growth Model
A model that explains growth rates in real GDP per capita ove…
Economic Growth
Define economic growth in the short run
Define economic growth in the long run
What is the trend growth rate?
What influences a country's trend grow…
The year on year increase in real GDP
An increase in the productive potential of an economy
This is the growth rate an economy can sustain without experi…
Level of investment - high investment increase the quantity a…
Define economic growth in the short run
The year on year increase in real GDP
Define economic growth in the long run
An increase in the productive potential of an economy
Economic Growth
What did Adam Smith see as being impor…
why was there a slowdown in US growth…
What have been the main sources of gro…
What are some of the modern day proble…
1) Growth would require specialization of labor... 2.) Patterns…
1. decrease in capital investment as a percent of GDP... 2. decr…
- technological advancement... - increase in the quantity of cap…
- strain on the environment... - unequal income distribution... - i…
What did Adam Smith see as being impor…
1) Growth would require specialization of labor... 2.) Patterns…
why was there a slowdown in US growth…
1. decrease in capital investment as a percent of GDP... 2. decr…
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