Macro 11 - Economic growth Flashcards
1
Q
Short run economic growth definition
A
An increase in growth rate in GDP
2
Q
Long run economic growth definition
A
An increase in productive capacity of economy.
3
Q
How does long run economic growth occur?
A
Increase in quality or quantity of factors of production
4
Q
What are the difficulties of measuring economic growth?
A
Under reported income and hidden economy
5
Q
What is the difference between economic growth and economic development?
A
Economic growth = Rise in GDP
Economic development = Rise in GDP + Increased quality of life
6
Q
what is sustainable economic growth
A
Economic growth which doesn’t compromise the needs of future generations
7
Q
A
