2A Flashcards
Key macroeconomic objectives
High economic growth
Low unemployment
Inflation 2%
Balanced gov budget
Protection of environment
Greater income equality
What is economic growth
An increase in the productive potential of an economy, measured by real gdp
What is GDP
Total market value of all goods and services produced in a country in a given year.
What is GNP
GDP plus income that residents have received from abroad, minus income claimed by non-residents.
What does real mean
Adjusted for inflation
What is GNI
GDP plus net income from abroad
What is a boom
Where output is rising faster than trend growth
What is slowdown
Growth is still rising, but at a decreasing rate
What is a recession
A fall in RGDP for two consecutive quarters
What are the benefits of economic growth
-Increased standard of living
-Increased employment
-Increased imports and exports
-Reduction in poverty
-Increased tax revenue
Costs of economic growth
Impact on environment, Ill health caused by increased pollution, depletion of natural resources
Depends on factors for economic growth
Depends on what is produced
depends on whether sustainable or not
