Economic Growth

• What is the macroeconomic objective discussed in this material?

  Economic Growth
• How can economic growth be defined?

  As an expansion in the productive capacity of the economy
• What is economic growth?

  An expansion in the productive capacity of the economy, enabling a society to produce more goods and services
• How can economic growth be demonstrated?

  By shifting the LRAS curve to the right or shifting the PPF curve outwards
• What is the difference between potential and actual economic growth?

  Potential growth is an increase in productive capacity, while actual growth is an increase in real GDP due to higher aggregate demand
• How does the accelerator effect relate to economic growth?

  An increase in investment (machinery, factories, equipment) will enable an increase in productive capacity in the long-run
• What is the output gap?

  The gap between where the economy is currently operating (AD/AS equilibrium) and where it normally operates (full employment)
• Why is economic growth important?

  It creates new jobs, boosts investment, increases business confidence, expands consumer choice, and improves living standards
• How can economic growth help with fiscal policy?

  A growing economy boosts tax revenues and generates money to finance spending on public and merit goods without raising tax rates
• How might the impact of economic growth differ between developing and developed countries?

  In developing countries, growth may ease poverty and enable investment in human capital, while in developed countries it may lead to higher incomes, profits, and tax revenues
• What are some potential drawbacks of economic growth?

  Increased income and wealth inequality, environmental damage, and overconsumption of demerit goods
• What are the strengths and weaknesses of economic growth as a macroeconomic objective?

  Strengths:

  • Creates new jobs and higher incomes
  • Boosts investment and business confidence
  • Expands consumer choice and lowers prices
  • Improves government finances through higher tax revenues
  • Enables investment in cleaner technologies

  
  

  Weaknesses:

  • Can lead to increased income and wealth inequality
  • Can cause environmental damage through pollution, waste, and habitat loss
  • May lead to overconsumption of demerit goods
  • Benefits may not be evenly distributed across society
• What are the strengths and weaknesses of qualitative research methods?

  Strengths:

  • Provides in-depth, rich data
  • Flexible and adaptable to new information
  • Captures complex phenomena

  
  

  Weaknesses:

  • Time-consuming and labor-intensive
  • Potential for researcher bias
  • Limited generalizability
  • Difficulty in replicating results
• How does photosynthesis work in plants?

  Process of photosynthesis:

  1. Light absorption by chlorophyll
  2. Light-dependent reactions: water splits, electrons excited
  3. Electron transport chain: ATP and NADPH produced
  4. Calvin cycle (light-independent reactions):

  • CO2 fixation
  • Reduction of fixed carbon
  • Regeneration of RuBP

  1. Glucose and other carbohydrates synthesized
• What is the first derivative of $x^2$?


  $2x$
• What is the formula to calculate the area of a circle?

  $\pi r^2$