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ECONOMIC GROWTH (CAUSES OF ECONOMIC GROWTH (SUPPLY SIDE (quality of FOP,…

- - - - tax rebates/concessions
    - - tax incentives
      - govt expenditure
- - - - percentage increase in real national output
        
        AD factors
        
        AS factors
    - - rate of growth of potential output
    - - economic growth in both material and non material aspects
    - - benefits of growth are fairly distributed
- - - - Higher level of consumption which reflects higher material standards of living
      - economic development can allow for more equality in income distribution, as well as protection of the natural environment
      - sustainable economic growth can prevent other macroeconomic problems from arising, such as inflation and BOP surpluses/deficits
    - - high opportunity cost incurred
        
        economic growth can only occur in certain industries, and hence growth of GDP and income may only affect certain groups of people
        
        higher instances of structural unemployment => more unemployment
        
        BOP current account deficit (greater demand for imports) + KFA account deficit (increase in liabilities due to increase in FDI)