Economic Growth

Questão	Responda
The governments main economic responsibility	Stabilise the economy
The governments four main macroeconomic goals are	economic growth, low inflation rates, low unemployment levels, stable balance of payments
Economic Growth	an increase in the national income within the economy as a whole.
The governments main economic responsibility	Stabilise the economy
The governments four main macroeconomic goals are	economic growth, low inflation rates, low unemployment levels, stable balance of payments
define economic growth	an increase in the amount of goods and services produced within the economy as a whole
Factors which lead to economic growth	Discovery of new natural resource, Technology progress , Improvements in labour productivity, Growth in working population
Factor causing economic decline	Natural disasters, Vast migration of labour, Depletion of natural resources
Define national income	A measure of economic activity in an economy over a period of time, usually one year.
The three methods of calculationg national income	expenditure, income and output approach
The output approach	adding up the value of all the goods and services produced
the income approach	adding up the value of the income earned on goods and services
the expenditure approach	adding up the value of the money spent on the goods and services C+I+G+(X-M)
Gross Domestic Product (GDP)	a measure of output produced in a country over a given period of time, usually one year, using the factors of production located in that country regardless of locally or foreign ownership.
Gross National Product (GNP)	measures the value of goods and services that the country's citizens produced regardless of their location GNP = GDP at factor cost + Net property income from abroad
Net Property Income from Abroad	Net property income from abroad = Income inflows from abroad income outflows from abroad
Income Inflows	are any form of factors incomes (rent, profit, wages, interest) earned by Trinidad nationals who are not located within the countrys borders
Income Outflows	any form of factor incomes paid to foreigner citizens
GDP at Factor Cost	GDP at Factor Cost = GDP at market prices + Subsidies INDIRECT taxes
Subsidies	a financial grant or gift given by the government to producres in order to reduce their costs of production which is passed unto the consumer in the form of lower prices. Eg Trinidad gas subsidy
Indirect tax	A tax levied on sales of a good or service eg value added tax VAT
Investment	the purchase of capital goods (i.e. assets used to produce more goods) that are not consumed immediately but are used in the future to create wealth.
Fixed capital formation	it measures the value of acquisitions of new or existing fixed assets by the business sector, governments and households
Factors that influence the level of investment	Interest rates, Risk, Corporate taxes , Business confidence
define interest rates	the percentage % paid on the principal when borrowing a loan from a bank or other financial institution
Real GDP	the level of output produced in a countryadjusted for inflation by using base year prices. Real GDP = Output x Base Year prices
Nominal GDP	the GDP is calculated using prices for the current year this is known as GDP at nominal value Nominal GDP = Output x Current year prices
GDP deflator	(Nominal GDP/Real GDP) x 100
Informal or hidden economic activity	the exchange of goods and services which are unrecorded by the government and no taxation is collected eg housekeeping services.
Business trade cycle	a graphical representation of fluctuations of economic activity that an economy experiences over a period of time
Contraction	a period in which the economy is growing at a rate significantly below normal
Depression	a particularly severe or prolonged recession
expansion or recovery	this period reflects economic growth shown as an upward movement along the cycle
advantages of economic growth	Income generation, Increase in employment, Reduced poverty, Increased productivity, Higher standard of living
disadvantages of economic growth	Exhaustion of non-renewable resources, Negative externalities, Increased inequality, Inflation risk
Problems with a recession	Unemployment increases, Production of goods and services decreases, Consumer spending falls

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	Criado por Nikolas Reece aproximadamente 8 anos atrás