https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh Section A en-us 2022-02-14 02:07:22 UTC 2022-02-14 05:30:15 UTC hello@padlet.com http://www.livingspacearchitects.com/wp-content/uploads/2019/02/Wellbeing.jpg https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045459621 actual growth 

Actual Growth is shown in Figure 2
on the AD-AS model as a rightward
movement of the equilibrium real
output, e.g. from Yo to Y 1.

Assume that the economy is currently
producing at Yo, where aggregate
demand (ADo) intersects aggregate
supply (ASo). Assuming that the
economy experiences an increase in
aggregate demand, represented by a
rightward shift of the AD curve from
ADo to AD1 as illustrated by Figure 2.
The result is an increase in real output
from Yo to Y1, which illustrates actual
economic growth.]]> 2022-02-14 05:11:13 UTC https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045459621 https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045461231 Potential Economic Growth is shown in Figure 4 on the AD-AS model as a rightward shift of the vertical and intermediate part of the AS curve from AS to AS. This results in an
increase in potential output; that is the
maximum real output of the economy
has increased from Ye to as shown in Figure 4.]]> 2022-02-14 05:12:35 UTC https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045461231 https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045463302 Sustained economic growth using the
AD-AS analysis can be illustrated by a
shift in both AD from ADO to AD1 and AS
from AS0 to AS1.as shown in Figure 6a.When economy has reached full employment, any increase in aggregate demand, i.e. from ADo to AD1, will not lead to any changes to real output. Only general price level will increase from Po to P1. In this case, only nominal GDP
increases as price increases without any increase in output.
An increase in real output can only be
achieved if the potential output increases.
This is represented by a rightward shift of the AS from AS0 to AS1. Hence an increase in AS would lead to an increase in both actual (Yo to Y1) and potential economic growth, (YFo to YF1) respectively. Thus there is sustained economic growth.]]> 2022-02-14 05:14:24 UTC https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045463302 https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045464129 2022-02-14 05:15:10 UTC https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045464129 https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045464746 2022-02-14 05:15:43 UTC https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045464746 https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045465695 2022-02-14 05:16:33 UTC https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045465695 https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045467994 Automation may eliminate human’s jobs, causing increasing spare capacity in the economy. This is due to structural unemployment, where there is a skills mismatch between the current skill of a worker and the skill that the economy demands for. The poor majority of workers whose jobs are taken over by automation would have no income, but the rich minority of workers who operate the machine would still be employed. This causes the poor to become poorer and the rich to become richer, leading to increasing inequality. Hence economy growth would not be inclusive. ]]> 2022-02-14 05:18:33 UTC https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045467994 https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045472170 higher wages will lead to a rise in cost of production, so the SRAS decreases and shifts upwards. however, due to increased consumers’ confidence as consumers in China “remain optimistic about the future”, consumer expenditure will increase. since C is a component of AD, AD is increasing at a faster rate. thus, the economy is still growing, but at a slower rate due to the fall in AS.]]> 2022-02-14 05:21:43 UTC https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045472170 https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045473375 Commodities have a PED value of less than 1, this is because the demand for commodities stay relatively the same even when prices increase or decrease, as commodities are essentials. Therefore, even if there is a fall in commodity prices, there will be a less than proportionate increase in demand in the commodity goods. In the long term, it might even result in a negative growth of an economy that largely relies on exporting commodity goods. Thus, the fall in commodity prices affected Brazil’s economic growth.]]> 2022-02-14 05:22:47 UTC https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045473375 https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045476441 High Govt Debt
If the economic growth is fueled by govt policies like subsidies for business etc, govt would place more burden on it's balance of payment and may result in negative bop to. This results in the growth bring  have to increase taxes such as income tax in order to repay the debt in the future. This means that households have less disposable income, causing a fall in purchasing power and consumption for the future, and since C is part of AD, ad will decrease, resulting in negative econ growth. Hence in this case, if the govt debt incurred is too high it means economic growth cannot be sustained.

Environment pollution 
Pollution is a negative externality, which means that households non-material standard of living decreases, as pollution causes health problems which reduces productivity of workers. This causes a decrease in productive capacity resulting in the leftward shift of the lras, resulting in lesser potential economic growth. Since PEG is essential in ensuring sustainable economic growth. econonic growth fueled by excessive environmental damage creates unsustainable economic growth as PEG decreases in the long term.

Depletion of resources
If natural resources are consumed at a rate faster then the rate in which it can be replenished,there may not be enough resources in the future to fuel the continuous economic growth, as the quantity of FOP available for the future generations is lessened as a result of excessive resources consumption, PEG for the future will be decreased thus the economic growth cannot be sustained. ]]> 2022-02-14 05:25:31 UTC https://padlet.com/yeochinleong/g4ij0llg2l5p2kqh/wish/2045476441