When there is an increase in real GDP, one can find the presence of economic growth. However, we cannot state recovery from a recent recession or a sudden increase in real GDP to be an economic growth.
What we understand from potential GDP is a sustainable economic growth where the hike continues year after year without fail.
Now, 2 important questions in this respect are:
- What are the aspects that regulate this potential GDP?
- What are the factors that help in its growth?
Links of Previous Main Topic:-
- Definition of Economics
- Economic Problem
- Market Equilibrium
- Employment and Unemployment
- Economic Growth Macroeconomics
- The Basics of Economic Growth
Links of Next Macroeconomics Topics:-
- Why Labor Productivity Grows
- Preconditions for Labor Productivity Growth
- Physical Capital Growth
- Human Capital Growth
- Technological Advances
- Growth Theories Evidence and Policies
- Classical Growth Theory
- Neoclassical Growth Theory
- New Growth Theory
- New Growth Theory Versus Malthusian Theory
- Sorting Out the Theories
- The Empirical Evidence on the Causes of Economic Growth
- Economic Growth Macroeconomics
- Policies for Achieving Faster Growth
- The Exchange Rate and the Balance of Payments
- The Dollar and Carry Trade
- Expenditure Multiplier Know the Keynesian Model
