economic growth Flashcards
1
Q
economic growth
A
an increase in real GDP over time
aims to increase the employment of fops
2
Q
difference between LRAS/AD curve and PPC
A
PPC illustrates that resources will never be fully employed
3
Q
Analysis of economic growth
A
pros: raised incomes, availability of goods or services, employment, improved public services, science and tech advances
cons: inflationary, negative externalities, sustainability, income inequality/ standards of living
4
Q
if there is not intervention or spending
A
AD naturally increases with population increase, but without supply side improvements, then there will be inflation
