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Macro obj ii :
Economic Growth, Sustainable Debt - Coggle Diagram
Macro obj ii :
Economic Growth, Sustainable Debt
economic growth
definition : an increase in real GDP, or the real quantity of goods and services produce over period of time
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short term growth
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Growth in actual output
- reduction i unemployment
- improvement in efficiency
long term growth
growth in production possibilities
- increased resource quantity
- improve resource quality
- technological change
increase in LRAS
- increased resource quality
- increased resource quantity
- technological change
- improvements in efficiency
- institutional change
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Sustainable Debts
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Definition : refers to a government's ability to manage its public debt (the total amount borrowed by the government) without compromising future economic growth or stability.
tax revenue = government expenditure - balance budget
tax rev < expenditure - budget deficit
tax rev > expenditure - budget surplus
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related past question:
19m, tz2- Explain how an increase in unemployment might lead to a loss of gross domestic product (GDP) and a budget deficit.