“Discuss the Causes and Effects of Economic Growth”

Economic Growth is where goods and services maximise in value over a period of time. This is measured by Real Gross Domestic Product (GDP) which is defined as “The total market value of all final goods and services produced in a country….equal to the total consumer, investment, and government spending, plus the value of exports minus the value of imports.”(www.Investorwords.com) In turn this is measured by the level of aggregate demand in the economy using the equation: AD = C + I + G + (X – M).


The diagram above indicates how real GDP grows over the years.


• The diagram above shows that in 2006 GDP grew by 0.7%, 2.7% higher than in 2005.
• Output in production grew by 0.1% where as manufacturing grew by 0.6%.
• Growth in the service sector declined to 0.8%, as it was previously 0.9%.
• Distribution sector also slowed to 0.2% as a cause of weaker growth in retailing and wholesaling.
•......

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Title: Causes And Effects Of Economic Growth
Approximate Word Count: 1057
Approximate Pages: 5 (250 words per double-spaced page)

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