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Economics: Principles in Action
Economics: Principles in Action

... 2. How is the expenditure approach used to calculate it? In this approach, economists estimate annual expenditures on consumer, business, and government goods and services, and net exports or imports of goods and services. 3. How is the income approach used to calculate it? Economists add up all the ...
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Steady-state economy

A steady-state economy is an economy of relatively stable size. A zero growth economy features stable population and stable consumption that remain at or below carrying capacity. The term typically refers to a national economy, but it can also be applied to the economic system of a city, a region, or the entire planet. Note that Robert Solow and Trevor Swan applied the term steady state a bit differently in their economic growth model. Their steady state occurs when investment equals depreciation, and the economy reaches equilibrium, which may occur during a period of growth.
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