Economic growth (New) 2T18 by william yeo https://padlet.com/yeochinleong/vgsui3jrmaii4b92 Section A en-us 2022-02-07 01:52:12 UTC 2022-02-07 03:33:58 UTC hello@padlet.com http://www.livingspacearchitects.com/wp-content/uploads/2019/02/Wellbeing.jpg https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032169372 high govt debt: will go deeper into death and cause higher inflation

environmental pollution: negative externalities and reduced NM-SOL for future gens

depletion of resources: less resources for future gens to use. LRAS dec]]> 2022-02-07 03:10:28 UTC https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032169372 https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032172869 when govt goes deeper into debt to continue economic growth, in long run they will eventually have no money to spend and have to repay debts so negative economic growth]]> 2022-02-07 03:13:43 UTC https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032172869 Group 1 https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032176995 AG is the increase in real GDP over a period of time. On AD/AS diagram, when AD or SRAS increases, the real GDP increases. This increase is the AG of the economy of the country.

PG is the increase in the maximum output of a country, with full employment of resources. On AD/AS diagram, when LRAS increases, the maximum potential output of the country increases. The Yf increases, thus, PG increases.

Sustained Growth is the increase in GDP maintained over a period of time, without giving rise to higher rates of inflation. On AD/AS, when both AD (at intermediate AS curve) and AS increase, sustained growth is obtained as real GDP increases while avoiding high increase in GPL]]> 2022-02-07 03:17:31 UTC https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032176995 When there is an improvement in technology, eventually technology will become more efficient than manual labour. Thus more technology will be employed and more workers will be retrenched which increases unemployment. Therefore even though there is an increase in real GDP/real national income the incomes of individuals is not increasing and hence there is no inclusive growth https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032177435 2022-02-07 03:17:55 UTC https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032177435 https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032177692 Fall in commodity prices makes g/s cheaper for more people, hence people have greater ability to consume g/s. This will increase the consumption in the country, increasing the AD of the country and the AD curve will shift to the right. Assuming PED of consumption is elastic, the fall in commodity prices will lead to a more than proportionate increase in quantity demanded. Hence, TR of the local firms will increase. Actual economic growth will be seen on the AD-AS model as a rightward movement of the eqm real output. ]]> 2022-02-07 03:18:08 UTC https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032177692 https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032187503 Due to investors having high confidence in the economies of India and China and investing more in the countries, they have the fastest growth rates of any major economies and their AD has increased, and the AD curve to shift to the right
However as the wages of the chinese workers increase, the cost of production of the chinese goods will also increase leading to a decrease in the short run AS this the AS curve will shift upwards. These two factors lead to a large increase in GPL from p1 to p2 but a less significant increase in RNY from Y1 to Y2. This explains the slowing down of China’s economy.]]> 2022-02-07 03:26:53 UTC https://padlet.com/yeochinleong/vgsui3jrmaii4b92/wish/2032187503