ECO 405 Week 8, Chapter 11: Economic Growth
|Slide # |Topic |Narration | |1 |Intro |Welcome to Economic Problems and Issues. In this lesson, we will discuss Economic Growth. | | | |Please go to the next slide. | |2 |Objectives |Upon completion of this lesson, you will be able to understand: | | | | | | | |The concept of economic growth; | | | |Short-Run fluctuations in economic growth; | | | |The determinants of economic growth; and | | | |The recent slowdown in growth. | | | | | | | |Please go to the next slide. | |3 |The Concept of Economic |A growing economy is a sign of prosperity and the chance to improve our quality of life. | | |Growth |Almost everyone agrees that a growing economy is preferred to one that is shrinking. But a | | | |number of important questions surround this issue. To begin, how do we measure economic | | | |growth, and how fast or slow should the economy grow? | | | | | | | |Economists view economic growth as a long-run process. It is not the result of a single event | | | |but the compounding of many events. For the economy to grow, a number of things must occur. | | | |The most frequently used measurement of economic growth is changes in real gross domestic | | | |product, or GDP. | | | | | | | |How fast the economy is growing at any point in time is very important. Small differences in | | | |growth rates today can translate into significant difference in the level of economic activity | | | |in the future because economic growth compounds year after year. | | | | | | | |Please go to the next slide. | |4 |Short-Run Fluctuations |For almost as long as markets have existed, people have been aware of fluctuations in the level| | |in Economic Growth |of economic activity over time. Every market-based economy on record has experienced | | | |historical periods of growth and prosperity followed by periods of declining production and | | | |incomes. These...
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