Economic Growth (Revision Quizlet Activity)

Here is a Quizlet revision activity covering aspects of economic growth. And we have summarised twenty key definitions.

Here are some key terms on economic growth to revise:

Accelerator effect: Where planned capital investment is linked positively to the past and expected growth of consumer demand

Brain drain: Movement of highly skilled people from their own country to another country where they can earn more money

Capital stock: The value of the total stock of inputs such as plant and machinery, technology and buildings.

Catch-up effect: Occurs when countries that start off poor tend to grow more rapidly than countries that start off rich

Creative destruction: Dynamic effects of innovation in markets where new products or business models lead to a reallocation of resources

Economic growth: Long run increase in a country's productive potential

External shocks: Unpredictable events such as volatile prices for oil, gas and foodstuffs

Foreign direct investment: Inflows of capital from foreign multinationals including takeovers and investment in new factories.

Human capital: A measure of individuals' skills, knowledge, abilities, social and health attributes

Hysteresis: When a sustained period of low aggregate demand and high unemployment can lead to permanent damage to aggregate supply

Inclusive growth: Growth where the benefits are spread across all sections of society - i.e. shared growth, and pro-poor growth

Infrastructure: Transport links, communications networks, sewage systems, energy plants and other facilities essential for the efficient functioning of a country

Innovation: Making changes to something established and creating new intellectual assets

Knowledge capital: Scientific and technological know-how that raises productivity

Net inward migration: When the number of people coming into a country is greater than those leaving in a given time period

Output gap: Difference between actual and potential national output

Productivity: How much output is produced for a given input (such as an hour of work)

Research and development: Creation and improvement of products and processes, based on scientific research - applied to market needs.

Stagflation: A combination of slowing economic growth and rising inflation

Sustainable growth: Growth that meets the needs of the present without compromising the ability of future generations to meet their own needs