Economic growth overview

Overview of economic growth.

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  • Economic Growth
    • Increase of potential level of output the econ can produce over time.
    • Growth =\= development.
    • Short-run
      • Makes use of spare capacity + labor
    • Long-run
      • Shifts the PPf outward
      • Usually shifts LRAS
    • Causes
      • Technical progress
      • Increased labour productivity
    • Economic cycle
      • Fluctuations in econ activity accompanying SR growth
    • sustainable =\= sustained
  • Known as economic recovery
    • Short-run
      • Makes use of spare capacity + labor
  • Investment
    • Causes
      • Technical progress
      • Increased labour productivity
  • Causes
    • Economic cycle
      • Fluctuations in econ activity accompanying SR growth
    • AD fluctuations
    • Supply-side factors
  • changes in nat Y or GDP can measure changes in living standards
    • Economic Growth
      • Increase of potential level of output the econ can produce over time.
      • Growth =\= development.
      • Long-run
        • Shifts the PPf outward
        • Usually shifts LRAS
      • sustainable =\= sustained
  • HDI is better measure
    • changes in nat Y or GDP can measure changes in living standards
    • Number of costs and benefits

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