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29 Economic Growth - Coggle Diagram

- - - - ↑govern tax revenue
      - ↑political standing
      - ↑living quality
    - - increase pollution
      - Greater stress on workers
      - If working at full capacity, shift from consumer to capital goods; ↓living quality
      - Need for Stable Economic Growth: does not endanger future growth
- - - - All incomes earned in producing country's output
      - Transfer payments (transfers of income from one group to another not in return for providing a good or service, eg. pensions benefit), Not Included
    - - Add up all expenditure on country's finished output
      - GDP=C+I+G+(X-M)
    - - Add up output produced by all industries in country (value of final goods)
      - Value added: the difference between the sales revenue received and the cost of raw materials used
- - - - =Base year P*Current Q
      - GDP Deflator= (Nominal GDP/Real GDP)100=(Current year P/Base year P)100
      - Base year's GDP deflator is 100
    - - =Country's Total GDP/ Population
      - Inform
        
        different population sizes across countries
        
        population growth
      - measures living quality
    - - =Current yearP*CurrentQ
      - Growth: (Current-Base)/Base*100%
  - - - ❌non-market output
        
        Subsistence agriculture: the output of agricultural goods for farmers’ personal use.
      - ❌underground market outputs
    - - 2 Tax rate
      - 3 Penalties for tax evasion
      - 1 Number of activities declared illegal
      - 4 govern regulations (strict?)