Ch 21 - Macroeconomic objectives: economic growth  

________: rising GDP means that people afford to buy more goods and services.

________: a increase in real GDP over time.

a increase in real GDP over time

may be the result of a fall in economic growth or negative economic growth in the short run, and may be solved using demand management policies

rising GDP means that people afford to buy more goods and services

Is the time period when the economy can change but the cost of production is held constant

time period when the price level in the economy can change and the cost of factors of production can change

Is the time period when the economy can change but the cost of production is held constant

is the level of output the economy archives with its current resource utilisation

There is an increase in AD, firms produce more, increases the utilisation of available resources

time period when the price level in the economy can change and the cost of factors of production can change

When there is economic growth in the short run

• Reduced poverty

• Greater employment

• Availability of goods and services

Growth rate = real GDP in Y1 - real GDP in Y2 / real GDP in Y1 * 100

the percentage change in the value of all of the goods and services produced in a nation during a specific period of time, as compared to an earlier period.

• Decreased sustainability

• Income disparities

• Inflation

• Balance of payments

an increase in the amount of goods and services produced per head of the population over a period of time.