Economics (AS)·Economic growth · NSSCAS 5.1
Economic growth: causes, measurement & policy
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Economic growth is the engine behind rising living standards — and behind Namibia's Vision 2030. In this lesson we define growth precisely as the rate of change of real GDP, calculate a growth rate step by step, and show growth on two diagrams you already know: an outward shift of the PPF and a rightward shift of AD/AS. We then define capital investment and prove why it is the key to growth, survey the factors and policies that drive it, expose the limitations of GDP as a measure of living standards, and finally weigh the costs of growth against its benefits the way the AS examiner rewards.
What you'll learn in this lesson
By the end you should be able to (NSSCAS Economics (AS) 5.1):
- Explain rates of change of real Gross Domestic Product (GDP) as a measure of economic growth
- Make comparisons of rates of growth between countries and over time
- Explain the limitations of using GDP to compare living standards between countries and over time
- Analyse and evaluate the factors and policies that affect economic growth
- Define capital investment and demonstrate the need for investment
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