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economic growth - Coggle Diagram
economic growth
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causes, policies, consequences
causes
- ss-side factors (incr. qqt of fop
- dd-side factors
- structural factors
- external factors
policies
- fiscal policy (encourage investment and technological improvements
- monetary policy
- aggregate ss-side policies
consequences
benefits:
- incr. level of consumption, incr. material sol
- helps avoid other macroeconomic problems
- enables easier redistribution of income
- society can afford to care more for the environment
costs:
- current opp. cost of growth
- environmental costs, depletion of non-renewable resources
- effects on income distribution
- effects on unemployment
- social effects
- impact on balance of payments
recession
-
problems
- loss of output and welfare
- increased unemployment
- strain on government budgets
- negative outlook and pessimism
- may cause deflationary spiral
inclusive growth
creates opportunities and distributes benefits of economic growth across societymeasured by:
- growth and development
- inclusion
- intergenerational equity and sustainability
economic development
economic growth accompanied by qualitative increase in solmeasured by:
- economic indicators (change in real gdp/capita, population demographics, income distribution, etc.)
- non-economic indicators (physical qol index, measure of economic welfare, hdi)
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