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Economic growth, Economic development - Coggle Diagram
Economic growth
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Inclusive growth
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
Measurement
- Growth and development
2.inclusion
- Inter generational equity and sustainability
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Actual growth
When there is actual increase in national input due to increase in AD.
So Keynesian range has greatest actual growth vs full employment lvl of output has no actual growth with same increase in AD.
Potential growth
Outward shift of PPF graph, where full employment level of output is increased
When AG >PG
Point of economy in PPC is becoming closer and closer to full employment level of output.
-idle resources reduce
-more inflation
-unit factor prices increase
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Causes
Supply
increase in labour force
increase I’m availability of natural resources
increase in capital stock
increase in labour productivity
increase in land productivity
increase in level of tech
demand
structural factors
external factors
Benefits
-more consumption so more sol
-lesser macroeconomic problems
-easier distribution of income
-society can afford to care for the environment
costs
-current opportunity cost of growth
-environmental costs and depletion of non-renewable resources
-effects on employment
-social effects
-impact on balance of payment
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