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GROWTH (SUSTAINED (ACTUAL
is defined as the expansion or increase in an…
GROWTH
SUSTAINED
ACTUAL
is defined as the expansion or increase in an economy's level of output or real GDP over time
:check: AD increase
BENEFITS
- CONSUMERS
:check: increase consumption and SOL
- PRODUCERS
:check: increase revenue and profits
- GOVERNMENT
:check: Creates jobs
:check: sustained and inclusive growth
COSTS
- Price Instability
:check: inflationary pressure due to slower potential compared to actual
- Unemployment
:check: rapid innovation and tech
:check: workers made redundant
- Unsustainability
:check: environmental pollution
:check: depletion of natural resources
- Uninclusive
:check: widening income gap
:check: threat to social and political stability
- Present and Future
:check: more savings, less consumption
:check: less savings, more consumption
POTENTIAL
is the increase in productive capacity of the economy, which is the maximum output the economy is capable of producing given available resources and tech.
:check: LRAS increase
POLICIES
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2) Supply-Side
:check: QUANTITY
:red_flag: labour
:red_flag: capital
:check: QUALITY
:red_flag: labour
:red_flag: capital
:red_flag: factor mobility
:red_flag: entrepreneurship
SUSTAINABLE
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POLICIES
-
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3) Regulations, Enforcement
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- economy is producing at its maximum possible output
- actual and potential increase in tandem
a rate of growth that can be maintained without creating other significant economic problems (such as depleted resources and environmental problems), particularly for future generations. It implies a positive and stable growth rate.
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indicates a rate of growth that is sustained over a period of time. it is broad based across economic sectors, and creates productive employment opportunities for the majority of the country's population