economic growth Flashcards
(8 cards)
What is economic growth
The increase in the amount of goods and services produced in the economy over time. It is measured as GDP
What is GDP
Total value of goods and services produced in an economy measured
What are the two types of economic growth and what they mean
Short term economic growth
-when there is an increase in the use of already existing resources (more workers, higher productivity)
Long term economic growth
-Increase in productive capacity of the economy
What are some causes of economic growth
Investment in capital (machinery)
technological advancements
education and training
An increase in the labor force
Improved infrastructure (roads)
Government policies (low taxes)
natural resources
what are some benefits of economic growth
Higher living standards
more job opportunities
reduced poverty
improved public services
Costs of economic growth
environmental pollution
inequality (money being distributed unevenly)
Inflation
lack of resources
overdependence
Explain GDP per capita
GDP divided by the total population, measures the average income per person
How does economic growth link to unemployment
Economic growth reduces unemployment
