Class notes economics Cambridge International AS and A Level Economics Second Edition
6 views 0 purchase
Module
Economics
Institution
Sixth Year / 12th Grade
Book
Cambridge International AS and A Level Economics Second Edition
Lecture notes study book Cambridge International AS and A Level Economics Second Edition of Peter Smith, Adam Wilby, Mila Zasheva (9) - ISBN: 9781398308237 (depth in unit 9.2)
Class notes economics Cambridge International AS and A Level Economics Second Edition
Unit 2.1: Demand Theory
9708 A2 Economics — Unit 1.2: Externalities
All for this textbook (5)
Written for
Secondary school
Economics
1
All documents for this subject (87)
Seller
Follow
razir.1
Content preview
Unit -9
9.2-Economic growth and sustainability
Actual economic growth
Actual economic growth occurs when output increases. It is sometimes referred to as short run
economic growth. It can be achieved as the result of greater utilization of existing resources.
production possibility curve (PPC) shows economic growth resulting from greater use of
existing resources. The economy is initially producing at point X. Then the production point
increases to point Y and more goods and services are produced.
Figure : Actual economic growth shown on a PPC
Actual economic growth can also be shown using an AD/AS diagram.Figure shows an increase
in aggregate demand in an economy with spare capacity. The increase in aggregate demand
brings into use previously unemployed resources and output (measured by real GDP) increases
from Y to Y1.
1
, Potential economic growth
For potential economic growth the rise in productive potential must be utilized to lead to higher
output.
potential economic growth is also known as trend growth and is measured by the estimated
annual change in a country’s potential level of national output. Potential growth is driven by
improvements in long run aggregate supply (LRAS)
Potential economic growth shown on a PPC
Potential economic growth shown onAD/AS diagram
For potential economic growth to lead to higher output, the rise in productive potential must be
utilized.
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller razir.1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.47. You're not tied to anything after your purchase.
