Economic growth
What is economic growth?
An increase in the level of output by a nation in a certain period of time (quarter, annual, etc)
What is inflation?
Increase in the general price level
Which measure is most commonly used to track economic growth?
Gross domestic product
What does GDP stand for?
Gross Domestic Product
How can government subsidies help maintain economic growth?
By reducing production costs
What is a negative side effect of rapid economic growth?
Environmental degradation
What is demand-pull inflation?
Inflation caused by excess demand in the economy
What is inflation's relationship to economic growth?
Moderate inflation can support growth
What happens during a recession?
Economic activity declines
How does improving education help maintain economic growth?
By increasing productivity and innovation
What is the role of entrepreneurship in economic growth?
It creates jobs and drives innovation
measures change over time in the prices paid by consumers for a representative basket of goods and services
Consumer Price Index (CPI)
Which country experienced rapid economic growth in the 21st century?
China
What is per capita GDP?
GDP divided by population
How can technological advancements lower inflation?
By reducing production costs
What indicates a growing economy?
Rising GDP
Give examples of cost push inflation
Increase in global oil price will increase the price of food produced by households
How to measure economic growth?
(GDP2-GDP1)/GDP1 * 100%
What is a knowledge-based economy?
Economy driven by intellectual capital and technology
Why is controlling inflation important for growth?
Stable inflation fosters investment and consumer confidence
Which sector is NOT directly included in GDP calculations?
Informal economy
What is a sign of demand-pull inflation?
A surge in consumer spending
As of October 2024, Indonesia's annual inflation rate was
around 1,8
What is "real GDP"?
GDP adjusted for inflation
What is income redistribution?
Taking income from the wealthy to give to the poor