Growth Flashcards
How do you measure GDP per capita
GDP/POPULATION
What is green GDP and how do you measure it
green GDP accounts for the environmental costs of production. GDP-enviromental costs
What are the positives of growth
-Higher disposable income:better standards of living eg education etc
-Higher employment:more demand for goods and services,more demand for labour,more income,better living standards
-higher profits for firms:households earning more,more consumption,so firms have extra revenue to invest in capital,which will continue profits over time
Definition of GDP
Monetary value of all goods and services in an economy produced over a year
Definition of growth
speed of which gdp increases
Negatives of GDP
-negative externalities not included eg air pollution
-errors given in data collection due to the amount of time given to collect vast amount of data
What are the negatives of growth?
-Inflation,prices high,high demand pull inflation which will erode purchasing power
-income inequailty,poor quality jobs,rural vs urban
-enviromental costs,air pollution,deforestation
-GDP doesnt account for illegal drugs
what are the evaluation for growth points
-sustainable growth,eg growth without inflation,no defict,enviromental costs
-inclusive growth,eg whole of society benefits
-role of private sector,eg private sector looks after its workers
what diagrams can short run growth be shown on
PPF,ADAS
what is nominal gdp
Growth without inflation
what is real gdp
growth with inflation taken into account
F*I can massively improve growth in a economy
FDI can massively improve growth in a economy
learn how to calculate REAL GDP
idk
