SAJC 2024_Economic Growth_Lecture Notes_Students

ST ANDREW’S JUNIOR COLLEGE JC2 H2 ECONOMICS 2024 Economic Growth In your first set of JC2 lecture notes , Standard of Living and Key Economic Indicators, you first learnt of a government’s four macroeconomic goals (sustainable and inclusive economic growth, price stability, low unemployment/full employment, favourable balance of trade). In this set of notes, we will explore the macroeconomic goal of sustainable and inclusive economic growth. Important concepts and tools and analysis  Actual and potential growth  Sustainable growth  Inclusive growth Key questions to consider 1. What are the different types of economic growth? 2. Why do governments want to achieve economic growth? 3. When economic growth happens in a country, why do we want to ensure everyone benefits? 4. What happens when countries experience undesirable rates of economic growth? 5. How do countries experience economic growth? How is this illustrated on a diagram?

St. Andrew’s Junior College Economics Department 2024 2 Contents 1. Economic growth ................................................................................................................................................................ 3 1.1. Actual Economic Growth ......................................................................................................................................... 3 1.1.1. How is actual economic growth illustrated? ................................................................................................... 3 1.2. Potential Economic Growth .................................................................................................................................... 5 1.2.1. How is potential economic growth illustrated? .............................................................................................. 5 1.3. Sustainable Economic Growth ............................................................................................................................... 6 1.3.1. How is sustained economic growth illustrated? .............................................................................................. 6 1.4. Inclusive Growth ....................................................................................................................................................... 8 2. Benefits of Achieving Economic Growth ........................................................................................................................ 9 2.1. Benefits of achieving sustainable growth ............................................................................................................ 9 2.2. Benefits of Inclusive Growth ................................................................................................................................. 10 3. Consequenc