2.1.1.a Economic growth

Economic growth:

• definition of economic growth
• measurement using increases in gross domestic product (GDP)
• limitations of GDP as a measure of growth
• the use of diagrams to show the economic cycle: annotating boom, downturn, recession and recovery
• the effect of each stage of the economic cycle on economic growth, inflation and unemployment
• the impact of economic growth on:
  • employment
  • standards of living
  • poverty
  • productive potential
  • inflation
  • the environment.