Economic growth
G3 Economics - syllabus K343, 2027
How growth is measured with real GDP, what causes it, its costs and benefits, recessions, and policies to promote growth.
- Economic growth and how it is measured
Economic growth is an increase in real GDP: the value of output after removing the effect of price rises.
- What causes economic growth
Growth comes from more total demand when there are idle resources, or from more and better resources.
- Advantages and disadvantages of economic growth
Growth raises incomes, jobs and tax revenue, but can harm the environment and widen inequality.
- Recession: causes and consequences
A recession is a period of falling real GDP, caused by lower demand or fewer or worse resources.
- Policies to promote economic growth
Fiscal and monetary policy boost demand in the short run; supply-side policy raises capacity in the long run.
- Put it together: Promote growth
A government wants faster economic growth over the next ten years. Compare three approaches.
What you will be able to do
I can define economic growth.
Syllabus K343, 4.5.1. Definition of economic growth
Taught in Economic growth and how it is measured
I can explain how real GDP measures economic growth.
Syllabus K343, 4.5.2. Measurement of economic growth: real Gross Domestic Product (GDP)
Taught in Economic growth and how it is measured
I can explain the causes of economic growth and weigh its advantages and disadvantages.
Syllabus K343, 4.5.3. Causes and consequences of economic growth: how economic growth may be caused by an increase in total demand, an increase in the quantity of resources or an increase in the quality of resources; advantages and disadvantages of economic growth
Taught in What causes economic growth, Advantages and disadvantages of economic growth
I can define a recession, explain its causes, and describe its effects on consumers, workers, firms and government.
Syllabus K343, 4.5.4. Causes and consequences of recession: definition of recession; how a recession may be caused by a decrease in total demand, a decrease in the quantity of resources or a decrease in the quality of resources; consequences of recession for consumers, workers, producers/firms and the government
Taught in Recession: causes and consequences
I can describe the policies that promote growth and judge how well they work.
Syllabus K343, 4.5.5. Policies to promote economic growth: the range of policies available to promote economic growth and their effectiveness
Taught in Policies to promote economic growth