Download PRESENTATION 3. Economic Growth

Economic Growth
Frederick University
2014
Definitions
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Economic growth – an increase in the
potential of the economy to produce
Economic growth – a shift in the
institutional PPF
Economic growth – a shift in the LRAS
curve
Economic growth – an increase in the
potential GDP
Conditions for Economic
Growth
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natural conditions
institutional conditions
political conditions
foreign environment
Factors of Economic Growth
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quantity and quality of labor force
quantity and quality of capital
technological, structural and
organizational changes in the economy.
Types of Economic Growth
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Extensive growth
Intensive growth
Indicators of Economic Growth
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rate of growth – the percentage
increase in GDP
percentage increase in GDP per capita
increase in the rate of employment
percentage increase in fixed investment
increase in labor productivity
Actual vs. Potential Growth
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Actual growth – actual increase in GDP
Potential growth – increase in the
estimated potential GDP