Economic growth is a long-term expansion of the productive potential of the economy
What is trend growth?
Trend growth refers to the smooth path of long run national output
Measuring the trend rate of growth requires a long-run series of data perhaps of 20-30 years or more in order to calculate average growth rates from peak to peak across different economic cycles
What determines the rate of economic growth?
Here are some of the main determinants of economic growth – they apply for both developing and developed countries although the relative weighting that we might attach to each will depend on the individual circumstances facing each country or region.
Key exam point:
What are some of the main Threats / Challenges to Economic Growth
Have you seen the tutor2u YouTube channel? Subscribe now and never miss a revision video!
Add these revision guides and worked answers to your essential revision resources for AS & A2 Economics exams this summer. Our revision guides are brand new and bring your tired old...