ECONOMIC GROWTH
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Define Real Gross Domestic Product (GDP) and explain how and why it is used to measure economic growth
Explain what economic growth is Explain the causes of economic growth |
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INTRODUCTION: Economic growth is arguably the most important of the macroeconomic aims. There a number of reasons for this that can be illustrated by a simple metaphor of sharing a birthday cake or pizza. Imagine that the cake/pizza is the same size and more people are invited to share in it. What happens to the size of the slice? The analogy provide an important insight that generally if a countries population grows and its output (the cake/pizza) stays the same then over time the living standards of the people must decline. If we want to see increased living standards then the cake/pizza must grow by greater than the amount of people sharing it. Similarly output must grow by at least the rate at which the population is growing to keep pace.
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Watch the video below so that you understand why economic growth is so important in maintaining and improving living standards. Take notes as you watch.
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Why is the growth rate so important to a countries economic development? Watch the video below so that you understand why the rate of growth is so important in maintaining and improving living standards. Take notes as you watch.
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ACTIVITY 1: What causes economic growth over time? Using pages 323 to 326 examine the 5 factors that cause economic growth over time. Try to find 3 examples of each to contextualize the idea from news sources or other sections of the textbook. As a last resort ask your teacher for an idea and then research it!
| how_do_economies_grow.docx |
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RECESSIONS:
Define recession and identify its main characteristics Describe how a recession moves the economy within its PPC |
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ACTIVITY ONE: RECESSIONS: HOW HAS THE COVID PANDEMIC AFFECTED GDP?
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| how_has_the_covid_pandemic_affected_gdp_and_economic_growth.pptx |
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EXAM PRACTICE: Complete the exam style questions. Make sure that you look at the amount of marks per question when you consider the length of your answer and the number of points to make. Also ensure that you think carefully about the command terms used in the question and ask if you are unsure what the command term is asking.
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| economic_growth_29.pdf |
| economic_growth.pdf |