1 / 8

Economic Growth.

Economic Growth. Mr E Mc Kee 2002. Economic growth. Is defined as “an increase in the real level of national income”. It is measured as the percentage change in real GNP or GDP. What factors lead to economic growth?.

nasim-rich
Download Presentation

Economic Growth.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Economic Growth. Mr E Mc Kee 2002.

  2. Economic growth. • Is defined as “an increase in the real level of national income”. • It is measured as the percentage change in real GNP or GDP

  3. What factors lead to economic growth? • Economic growth occurs when there is an increase in the quantity or quality of resources available in an economy. • Quantity:UK grew strongly after the discovery of north sea oil • Quality:improving the quality of resources increases growth, e.g. education increases the value of human capital and makes workers more productive.

  4. Advantages of economic growth, • Higher levels of employment. • Increased government revenue. • Increased investment • Improves living standards.

  5. Disadvantages of economic growth. • Inflation • Negative externalities • Increases in relative poverty

  6. Trends in economic growth.

  7. Trends in economic growth. • A boom occurs when an economy experiences growth which is above the trend rate. 1986-1988 • A recession occurs when the economy experiences negative growth rates for two consecutive quarters. 1990-1992 • A slowdown occurs when growth rates are falling but not yet negative. 1988-1990 • A recovery occurs when growth rates increase after a recession or a slowdown. 1992-1994

  8. Recent UK growth rates

More Related