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