2.5.1 Causes of growth

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    2.5.1 Causes of growth

    a) Factors which could cause economic growth
    Key Factors effecting Short-Run Economic Growth

    Key Factors effectng Long Run Economic Growth

    b) The distncton between actual and potental growth
    Actual growth – short run roftth – % increase in a country’s real GDP
    Usually measured annually – caused by an increase in AD
    Potental growth – lon run expansion of productve potental of an economy – caused by increases
    in AS
    Potental output of an economy is fthat it could produce if resources ftere fully employed

     

     

     

     

     

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