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Study sets matching "economic growth"

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Study sets matching "economic growth"

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)
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…
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…
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…
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…
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…
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…
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…
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…
13 terms
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
13 terms
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…
9 terms
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
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
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…
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…
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
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
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…
9 terms
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…
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.
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
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…
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…
14 terms
Economic Growth
macro economics
measure of national income
national income
GDP nominal
the study of the economy as a whole
GDP
value of all incomes in the economy added together
price x number of goods produced
macro economics
the study of the economy as a whole
measure of national income
GDP
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…
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…
10 terms
Economic Growth
economic growth
standard living
GDP
GNP
long term expansion of productive potential of an economy
the level of wealth, comfort, material goods and necessities…
Gross Domestic Product is the total value of all goods and se…
Gross National Product is GDP + net property incomes from abr…
economic growth
long term expansion of productive potential of an economy
standard living
the level of wealth, comfort, material goods and necessities…
9 terms
Economic Growth
Economic growth
Long-run economic growth
Short-run economic growth
Causes of long-run economic growth
An increase in the potential output an economy can produce.
Shown by an outward movement of the economy's PPF, which incr…
An increase in the output due to making use of spare capacity…
Investment in capital goods... Investment in human capital (trai…
Economic growth
An increase in the potential output an economy can produce.
Long-run economic growth
Shown by an outward movement of the economy's PPF, which incr…
21 terms
Economic Growth
Economic growth
Real GDP per capita
Rule of 70
Factors that understate the growth of…
An increase in real GDP occurring over some time period; an i…
the amount of real output per person in a country... Real GDP pe…
the mathematical approximation that tells us that we can find…
1) Improved products and services... 2) Added leisure... 3) Other i…
Economic growth
An increase in real GDP occurring over some time period; an i…
Real GDP per capita
the amount of real output per person in a country... Real GDP pe…
30 terms
Economic Growth
Economic structure
Forex
Primary sector
Secondary sector
Is a term that describes the changing balance of output, trad…
Foreign exchange market
Producing using natural resources including the extraction of…
The production of manufacturing goods... E.g- manufacturing, car…
Economic structure
Is a term that describes the changing balance of output, trad…
Forex
Foreign exchange market
10 terms
Economic growth
Real GDP per capita
Formula for real GDP per capita
Supply factors
Labor-force participation rate
real output per person in a country
Real GDP/Population
changes in physical and technical agents of production
percentage of the working-age population actually in the labo…
Real GDP per capita
real output per person in a country
Formula for real GDP per capita
Real GDP/Population
16 terms
Economic growth
Economic growth
Advantages of Economic growth are:
Unemployment falls/Employment increases:
Government revenue increases:
It can be defined as an increase in GNP per head without any…
1. Unemployment falls/Employment grows... 2. Government revenue…
To produce more output more workers are required
The government receives increased revenue, e.g. PAYE on ... extr…
Economic growth
It can be defined as an increase in GNP per head without any…
Advantages of Economic growth are:
1. Unemployment falls/Employment grows... 2. Government revenue…
15 terms
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
29 terms
Economic growth
GDP definition
Nominal GDP definition
what could increase nominal gdp
real GDP definition
gross domestic production, total value of production within a…
gdp measured at current prices, does not specify how much of…
production increases, or price level changes or both
gdp is measured at constant prices, real values convert nomin…
GDP definition
gross domestic production, total value of production within a…
Nominal GDP definition
gdp measured at current prices, does not specify how much of…
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…
36 terms
7 Economic Growth: Growth Accounting
Increase in aggregate real output is d…
Growth accounting is to:
Growth accounting starts with:
Cobb-Douglas
1. Factors of production... 2. Total factor productivity
Measure how much of the growth in aggregate output is account…
Y = zF(K,N)
F(K,N) = (K^a)(N^1-a)
Increase in aggregate real output is d…
1. Factors of production... 2. Total factor productivity
Growth accounting is to:
Measure how much of the growth in aggregate output is account…
12 terms
Economic Growth
Economic Growth
Inflation
GDP
Real GDP
Economic growth is an increase in actual output
A sustained increase in the general price level over a period…
It is the value of final goods and services produced by an ec…
Nominal GDP with the removal of the distortion caused by incr…
Economic Growth
Economic growth is an increase in actual output
Inflation
A sustained increase in the general price level over a period…
28 terms
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…
10 terms
economic growth
What might be a better title for this…
How did the contribution of the servic…
Which statement most accurately descri…
Economic growth takes place when a cou…
Total exports for the United States and CHina
it rose significantly
China exported more goods than the United States from 2010 to…
produced more goods and services
What might be a better title for this…
Total exports for the United States and CHina
How did the contribution of the servic…
it rose significantly
12 terms
Economic Growth
EG
Real GDP per Capita
Output Gap
SR EG
increase in the real output of the economy
output in the economy, divided by population size, adjusted f…
Difference between actual and potential GDP
•Spare cap in economy... •Caused by rise in AD... •economy moves ne…
EG
increase in the real output of the economy
Real GDP per Capita
output in the economy, divided by population size, adjusted f…
13 terms
Economic growth
Growth
Actual growth
Real GDP
Potential growth
Occurs when there is an increase in aggregate demand or aggre…
Increase in real GDP
Output of an economy, with the effects of inflation removed
Amount by which a country could increase its production of al…
Growth
Occurs when there is an increase in aggregate demand or aggre…
Actual growth
Increase in real GDP
9 terms
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…
27 terms
economic growth
macroeconomic policy objectives 6
other macroeconomic policy objectives 5
meaning of economic growth
ecominic growth measured by
stable balance on current accounts ... growth of GDP ... inc in sta…
improves access to public services ... improved competitiveness…
inc in the productive potential of an economy
% inc in real GDP over a year
macroeconomic policy objectives 6
stable balance on current accounts ... growth of GDP ... inc in sta…
other macroeconomic policy objectives 5
improves access to public services ... improved competitiveness…
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…
15 terms
Economic growth - Chapter 14
Business cycle
Output gap
Potential GDP
Actual GDP
A phenomenon whereby GDP fluctuates around its underlying tre…
The difference between actual real GDP and potential real GDP
GDP that could be achieved if the economy was using its resou…
GDP that we observe
Business cycle
A phenomenon whereby GDP fluctuates around its underlying tre…
Output gap
The difference between actual real GDP and potential real GDP
9 terms
Economic growth
Green GDP
Gross domestic product
Hidden,black or informal economy
Net national income
a measure of GDP which takes account of the environment costs…
a measure of the output or value added of an economy which do…
economic activity where trade and exchange take place but whi…
a measure of national income which includes both net income f…
Green GDP
a measure of GDP which takes account of the environment costs…
Gross domestic product
a measure of the output or value added of an economy which do…
22 terms
Economic Growth
What percentage of the world's populat…
How did economic growth begin?
What are growth miracles and growth di…
What is the Rule of 70?
80%
With the Industrial Revolution.
Growth miracles: United States, South Korea, & Japan. (Countr…
It gives you the number of years it will take for an economy…
What percentage of the world's populat…
80%
How did economic growth begin?
With the Industrial Revolution.
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
Economic Growth
GDP (Gross Domestic Product)
What is the Formula?
Nominal GDP
An increase in Real or Potential GDP.
The total value of all final goods and services produced in a…
(New - Original)... ----------------------- x 100... Original
- Total value of output at current prices.... - No adjustment f…
Economic Growth
An increase in Real or Potential GDP.
GDP (Gross Domestic Product)
The total value of all final goods and services produced in a…
67 terms
Economic growth
Economic growth is the increase in the…
measured by the annual % change in rea…
The increase in trend or potential GDP…
shown by a movement rather than a shift
Define economic growth
Define Short term economic growth
Define Long term economic growth
How is short-run economic growth shown on a PPF ?
Economic growth is the increase in the…
Define economic growth
measured by the annual % change in rea…
Define Short term economic growth
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