Economic Growth | A-Level Economics Notes
These revision notes cover everything you need to know about Economic Growth for A-Level Economics. They're designed for students studying AQA A-Level Economics, Edexcel A-Level Economics, and Edexcel International A-Level Economics. Written by Jaisul Naik, UCL Economics graduate and A-Level Economics tutor since 2017.
What is the difference between real and nominal?
Real - adjusted for inflation
Nominal - not adjusted for inflation
What does per capita mean?
per person (divide by the population)
What is real GDP?
The total value of goods and services produced in the UK economy
What are two limitations of using real GDP to measure living standards?
Two limitations of using real GDP to measure living standards are that
- it does not factor in inequality
- it does not take into account subjective happiness as these might be influenced by stressful jobs or the number of hours worked
What is (actual) economic growth?
An increase in real GDP
What is potential economic growth?
An increase in the productive potential of an economy
What is the trend rate of economic growth?
The trend rate of growth is the average rate the productive potential is increasing at over a longer period e.g. 10 years.