What is actual growth?
It refers to the increase in real output of an economy in a year
measured by percentage increase in real GDP
represented by a mvt inside the PPC curve or nearer to the curve
What is potential growth?
It refers to the increase in the economy’s productive capacity
measured by the annual percentage increase of the economy’s capacity to produce
represented by outward shift of PPC curve
inclusive growth
refers to rate of growth that is sustained for a period of time, is broad-cased across economic sectors and creates productive employment for majority of the country’s population.
productive employment refers to employment yielding sufficient returns to labour to permit the worker and his/her dependents a level of consumption above the poverty line
hence inclusive growth is achieved when economy experiences higher real output at stable prices without worsening income equality
sustainable growth
rate of growth sustained over a period of time and can be maintained without causing significant economic problems, particularly for the future generations
what are the 4 causes of undesirable econ growth?
unsustainable growth
non-inclusive growth
persistently slow growth
negative growth
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