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Economic growth (Recession (Problems (Loss of output & welfare,…
Economic growth
Recession
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Problems
Loss of output & welfare, unemployment, ↓govt budget, ↓confidence, possible deflationary spiral
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Sustained growth
rate of growth that can be maintained in the LR without creating significant economic problems. implies +ve and stable growth rate over an extended period of time
Inclusive
is
Economic growth that creates opportunity for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society
Indicators
- Growth and Development (GDP per capita, labour productivity)
- Inclusion (Gini, median household income, poverty rate)
- Intergenerational Equity and Sustainability (net saving, dependency ratio)
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Economic Development
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Cause
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Structural Factors
favourable cultural, social, political environment promotes growth
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Measurement
Economic indicator (real gdp per capita, etc)
Non-economic indicator (PQLI, etc)
is
Economic growth accompanied by the qualitative improvement in the SoL, involves changes in the economic, social, and political structure of the country
- idle resources and unemployment ↑
- inflationary pressure build up, through higher wages
- excess labour demand leads to real wage growth> productivity growth
- unit labour costs↑, erosion of export competitiveness
- GDP growth moderates towards potential growth
- ↑ in spare capacity, unemployment
- growing gap between potential and actual output