What is economic growth and how do we calculate its rate?

What will be an ideal response?


Economic growth is the sustained expansion of production possibilities. It is measured by the increase in real GDP over a given time period. The economic growth rate is the annual percentage change in real GDP.

Economics

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Temporary tax cuts would cause

A) the AA-curve to shift left. B) the AA-curve to shift right. C) the DD-curve to shift left. D) the DD-curve to shift right. E) a shift in the AA-curve, although the direction is ambiguous.

Economics

What is the value of disposable income?

Consumption expenditures$4,150
Federal government purchases of goods and services850
State and local government’s purchases331
Investment751
Proprietors income150
Compensation of employees4,080
Corporate profits134
Taxes on corporate profits23
Rental income31
Capital consumption allowance295
Indirect business taxes130
Net interest147
Exports300
Imports320
Undistributed corporate profits111
Transfer payments66
Personal taxes45
Dividends0
Income Earned from the Rest of the World252
Income Earned by the Rest of the World1,347
Social insurance taxes222
Statistical discrepancy5

A. $3,618
B. $4,795
C. $3,727
D. $4,207
E. $4,017

Economics

Why isn't it correct to say that people who are risk averse avoid risk?

What will be an ideal response?

Economics

Refer to the diagram, where T is tax revenues and G is government expenditures. All figures are in billions of dollars. If the full-employment GDP is $400 billion while the actual GDP is $200 billion, the cyclically adjusted budget deficit is:



A.  $40 billion.
B.  zero.
C.  $60 billion.
D.  $20 billion.

Economics