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Economics 2.5.1 - Coggle Diagram
Economics 2.5.1
Causes of economic growth
land
natural resources are exploited
higher output
more spending
labour
increase in quantity or quality of labour
changes in birth rate
changes in population of working age
immigration
skilled workers
training and education
flexible workers
capital
capital increases over time to sustain economic growth
increased investment enhances output
technology
cut costs of production
create new products
Actual growth
economic growth as measured by recorded changes in real GDP over time - current performance
observed in real time changes in GDP
influenced by short term factors (demand)
potential growth
economic growth as measured by the changes in the productive potential of the economy over time
driven by long term factors (supply)
estimate in the economy's capacity
export led economic growth
Export led growth is where a significant part of the expansion of real GDP, jobs and per capita incomes flows from the successful exporting of goods and services from one country to another
rise in exports leads to increase in AD