Economic Growth: Causes & Remedies

The overall well-being and economic health of consumers based on their purchasing of goods/services.

The total value of goods and services produced in a country during a specific time using available resources.

GDP can be measured via income, expenditure, or value added by producers.

A method of measuring GDP that counts income from wages, rents, and profits generated by production.

A method of measuring GDP that sums up all expenditures on final goods and services.

When assessing GDP growth, consider factors like inflation and population changes.

The level of wealth, comfort, and material goods available to a certain socioeconomic class or geographic area.

The total production of goods and services in an economy, equal to both income and expenditure measures.

GDP measures total final expenditures: GDP = C + I + G + (X-M).

GDP consists of Consumption (C), Investment (I), Government spending (G), and Net exports (X-M).

Expenditure by households on durable goods, non-durable goods, and services.

Purchase of machinery, equipment, buildings, and inventory changes by businesses.

Value of production measured at current prices for goods and services.

Value of production adjusted for inflation, measured at constant prices.

GDP measured as total income firms pay households for production factors.

Payments made without a good or service being exchanged, like unemployment benefits.

Production at home that does not involve market transactions.

Economic activity hidden from the government to avoid taxes or that is illegal.

Time spent away from work that can lower economic growth rates.

The state of the environment that is not reflected in GDP but affects living standards.

Aspects like leisure, environmental quality, and informal economy are not valued in GDP measurement.

Markets that are experiencing a decrease in demand and sales.

Recessions can create winners and losers in retail, affecting demand patterns.

An increase in the number of people available for work contributing to economic growth.

Improvements in the efficiency of labor, often driven by capital or technology increases.

Economic growth explained by capital accumulation, labor division, and comparative advantage.

The increase in a country's output of goods and services over time.

A period of rapid economic growth and increasing incomes.

A period of economic decline where incomes fall.

GDP measured without adjusting for inflation or price changes.

GDP adjusted for inflation, reflecting true economic output per person.

The percentage change in real GDP over time, indicating economic health.

Countries with advanced industrial sectors and higher income levels.

Countries with less industrialization and lower per capita income.

Key takeaways from visual data on economies over years.

China's real GDP growth rate was around 10% for recent years.

India's growth rate hovers around 5% annually in recent years.

The process where developing countries increase their GDP towards that of developed countries.

Changes in currency exchange rates affect GDP measurements in nominal terms.

Nominal GDP represented using US currency for comparison purposes.

Large-scale economic factors that influence all firms but are out of their control.

A period of significant economic growth characterized by increased output and demand.

Growing economies generally lead to higher income and greater demand for products.

Products whose demand decreases as consumer income rises, often lower-quality items.

In recessions, some businesses thrive while others fail due to changing demand.

Post-recession impacts on UK retailers explain why some succeeded while others failed.

As incomes rise, consumer preferences may shift away from certain products.