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economic growth 2.5
2.5.1 Causes of growth
b) distinction between actual and potential growth
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what's Actual economic growth ?
an
increase
in quantity of
goods
/
services
produced in an
economy
in a
given period
of
time
how's actual growth measured?
by percentage change
in
real gross domestic product
(
GDP
)
what's Potential growth?
increase
in
productive potential
of an
economy
how's potential growth shown?
shift
outward
of the
PPF
or
LRAS
curve
actual economic growth
may be
less
than the
potential growth
available to the
economy