Economic growth
An increase in a country's real GDP over time.
What is economic growth?
A curve that shows the maximum possible output combinations of two goods or services an economy can produce.
What is the production possibility curve?
The total demand for goods and services in an economy at a given price level and time period is called this.
What is aggregate demand?
This sector represents all individuals who earn income and spend money in the economy.
What is the household sector?
This is the equation for GDP.
What is C + I + G + (X-M)?
A point inside the PPC represents this.
What is inefficiency or underutilisation of resources?
A rightward shift of the AD curve causes this to increase.
What is Real GDP?
Injections into the circular flow include government spending, investment, and this.
What are export receipts?
This is GDP that does not account for inflation.
What is nominal GDP?
An outward shift of the PPC represents this.
What is an increase in the productive capacity of an economy or economic growth?
A decrease in income tax will shift this curve to the right.
What is aggregate demand (AD)?
This sector earns income through the sale of goods and services.
What is the firms sector?
GDP is not always a good way of measuring the growth of an economy. Economies often refer to this when wanting a real indication of economic growth.
What is Net Social Welfare?
A point on the curve represents this.
What is full employment of resources?
These are the 5 components of aggregate supply.
What is availability of resources, cost of production, productivity, technology and exchange rates?
The financial sector connects savers and borrowers through these types of institutions.
What are banks?
This economic concept explains why a country with a high GDP growth rate may not see an improvement in living standards if the population is growing rapidly.
What is Real GDP per capita?
These are three assumptions of the production possibility curve.
What is resources are fixed, technology is fixed and there are only 2 goods.
To achieve sustained economic growth as a nation we want this.
What is an increase in short-run AD and an increase in long-run AS?
The circular flow model includes leakages such as taxation, savings, and this.
What are import payments?