Economic growth
What Economic growth means in Economics A-Level, as defined for AQA.
Definitions of Economic growth
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Reference: AQA
A goal that can conflict with a balanced current account, as higher incomes increase import expenditure given a positive marginal propensity to import.
An increase in real national income, which typically correlates with higher living standards, lower unemployment, and increased tax revenues.
A rise in potential output that weak institutions, such as corrupt legal systems or fragile banks that restrict lending, can constrain.
A quantitative measure defined as an increase in the real gross domestic product or productive capacity of an economy over time.
An outward shift of the entire PPF illustrates this, caused by an increase in the quantity or quality of factors of production.
An outward shift of the entire boundary, reflecting an increase in the quantity or quality of factors of production.
Topics that use Economic growth
- Determinants of long-run aggregate supply (AQA A-Level)
- Economic growth and development (AQA A-Level)
- Possible conflicts between macroeconomic policy objectives (AQA A-Level)
- Production possibility diagrams (AQA A-Level)
- The circular flow of income (AQA A-Level)
Related terms
- Living standards
- Macroeconomic equilibrium
- Negative output gap
- Allocative efficiency
- Banking system
- Capital accumulation
- Circular flow of income
- Classical long-run aggregate supply (LRAS) curve
Using Economic growth in the exam
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