Qualification > Commerce
ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!
Freaked12:
Economic growth leads to a rise in GDP per capital because more employement takes place as more output is being produced,this leads to a rise in aggreagate income and thus GDP per capita rises.More income will lead to a higher disposable income which could be spent on other goods and services thus resulting in employment in other sectors of the economy.However if there is a rise in nominal GDP which means the value of output has only risen because of increase in value of money due to inflation then economic growth has not occured as the output has remained same as the last year.
Am i correct in this analysis of economic growth
J.Darren:
--- Quote from: Freaked12- on June 06, 2010, 05:44:06 pm ---Economic growth leads to a rise in GDP per capital because more employement takes place as more output is being produced,this leads to a rise in aggreagate income and thus GDP per capita rises.More income will lead to a higher disposable income which could be spent on other goods and services thus resulting in employment in other sectors of the economy.However if there is a rise in nominal GDP which means the value of output has only risen because of increase in value of money due to inflation then economic growth has not occured as the output has remained same as the last year.
Am i correct in this analysis of economic growth
--- End quote ---
You may also wish to mention depletion of resources. Also the fact that government expenditure and revenue has increased either through this or as a result of this ... The level of investment has increased, so as the level of consumer spending. Inevitably, the general price level would also increase due to a demand-pull inflation.
Freaked12:
--- Quote from: J.Darren on June 06, 2010, 05:48:07 pm ---You may also wish to mention depletion of resources. Also the fact that government expenditure and revenue has increased either through this or as a result of this ... The level of investment has increased, so as the level of consumer spending. Inevitably, the general price level would also increase due to a demand-pull inflation.
--- End quote ---
why should i go for a multiplier effect if its generally for four marks
If i would go for that then the description of ecnomic growth will take whole page.
i will talk about
Economic growth can be either positive or negative. Negative growth can be referred to by saying that the economy is shrinking. Negative growth is associated with economic recession and economic depression.
In order to compare per capita income across multiple countries, the statistics may be quoted in a single currency, based on either prevailing exchange rates or purchasing power parity. To compensate for changes in the value of money (inflation or deflation) the GDP or GNP is usually given in "real" or inflation adjusted, terms rather than the actual money figure compiled in a given year, which is called the nominal or current figure.
Government revenue will also increase due to more tax revenue and Government spending could also increase as a result.This may result in cost push inflation as more capital goods will have to imported which could be shown via a demand and supply diagram where demand curve shifts to the right increasing price.
If supply outstrips demand then there will be demand pull inflation which will curtail spending and thus economic growth could also result in economic recession unless Government takes control by increasing taxes
J.Darren:
--- Quote from: Freaked12- on June 06, 2010, 05:54:47 pm ---why should i go for a multiplier effect if its generally for four marks
If i would go for that then the description of ecnomic growth will take whole page.
i will talk about
Economic growth can be either positive or negative. Negative growth can be referred to by saying that the economy is shrinking. Negative growth is associated with economic recession and economic depression.
In order to compare per capita income across multiple countries, the statistics may be quoted in a single currency, based on either prevailing exchange rates or purchasing power parity. To compensate for changes in the value of money (inflation or deflation) the GDP or GNP is usually given in "real" or inflation adjusted, terms rather than the actual money figure compiled in a given year, which is called the nominal or current figure.
Government revenue will also increase due to more tax revenue and Government spending could also increase as a result.This may result in cost push inflation as more capital goods will have to imported which could be shown via a demand and supply diagram where demand curve shifts to the right increasing price.
If supply outstrips demand then there will be demand pull inflation which will curtail spending and thus economic growth could also result in economic recession unless Government takes control by increasing taxes
--- End quote ---
Cost-push inflation is when a producer transfers the increase in the production cost to the consumers, resulting in higher marked prices ... Nominal GDP is for the purpose of identifying whether real growth has taken place in an economy.
elemis:
In the pastpapers I keep seeing stuff regarding the elasticity of the labour supply.
Could someone please explain this concept along with the usual factors that affect this elasticity ?
+rep for the first person who does the BEST job ;)
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