Economic growth has a close relationship with economic development. We need economic growth to support economic development because it contributes to increased output and income in the economy, which in turn contributes to prosperity.
How Do Imports Impact the Economy?
Imports impact the economy in several aspects. For example, at the micro level, imports affect competition by increasing supply in the domestic market. Consequently, there is more pressure on prices and profitability in the domestic market. On the
How does Unemployment Impact Individuals, Society, Businesses, and the Economy?
Unemployment has wide implications. It doesn't just have consequences on the individual. But, it also impacts society, business, and the economy. For example, unemployment causes: Higher poverty and crimeDecrease in business revenueIncreased
How Household Wealth Affects Aggregate Demand and the Economy
Household wealth influences the decision to spend money, impacting aggregate demand. This has a significant impact on the economy, especially where household spending makes a dominant contribution to GDP. In addition, the wealth effect may be
Economic Development: Meaning, Goals, and Stages
What's it: Economic development refers to the progress of an economy in terms of quality. It's not just about economic growth. It also talks about the multidimensional aspects of a country, such as increasing per capita income, improving
Potential GDP: Determinants, Importance, How to Calculate It
What's it: Potential GDP refers to the maximum output an economy can produce using its existing economic resources. It represents an economy's long-run aggregate supply. At this level of output, the economy will fully utilize all its resources and
Real GDP: Formula, How to Calculate, Determinants
Real gross domestic product (real GDP) is the market value of all goods and services produced in the economy, measured at constant prices. Its growth represents a change in the aggregate output; hence economists use it as an economic growth
Economic Growth: Factors, Importance, Impacts, How to Measure It
Economic growth refers to an increase in output in an economy over time. It can be short term or long term. In the short run, growth represents an increase in real output, usually seen from changes in real GDP. Meanwhile, in the long run, growth