Economic Assignment: Economic Growth

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Economic Assignment Economic growth -by Elbert Economic growth is a tool always use to the government, use some data to compare with economic develops. So in my assignment I will talk about what is economic and why it important; how economic growth occurs with some policies; and describe how does that two countries government use policies control the economic. The economic growth definition is the percentage increase in national output, normally expressed over a 12 month period. Actual growth is the percentage annual increase in national output, that means the rate of growth in real GDP(Gross Domestic Product). The real GDP measure the included value of goods and services for economic…show more content…
Found the new raw materials, for example use the natural gas to instead oil. 5. Innovative new technological, like the internet change can help economic growth. The government has some policies to control the economic growth: supply side policy, monetary policy and fiscal policy. The supply side policy is a range of measure to rise aggregate supply, use this way to increase productivity of the economy, it means use increase the production’s quality or quantity like land, labour, capital and so on to increase the economic growth. The government use supply side polices to intervention control increase growth and promote stability, then lead to increase potential long-run aggregate supply. As the diagram shows, a good supply side policies can shift aggregate supply curve right, like reduce taxes rates to incentives for employees to find work, thus increase real GDP and reduce price level. Secondary is monetary policy, it is government influence on the economy through affecting the amount of money in the economy. The Centre Bank control the money supply and rates, like interest rate, to influence the growth. The Centre Bank usually change the interest rate, buy or selling the government bonds and volume of credit to keep…show more content…
From the diagram we can see South Africa’s economic growth speed is so slow. A we know it is a developing country, it GDP is $350 billion which ranks 33rd in the world. At year 1996, the south Africa government made the plan: GEAR, that include promoting privatization; reduce deficit; increase export and encourage the development of small or medium business company. For these policies, it help more people found jobs and change them living standard, that can increase economic growth. At 2008 financial crisis, the government use the money policy and supply side policy, by reduce interest rate to stimulate aggregate demand, and reduce tax, it can stimulate the person spending and investment, it lead to the economic growth and increase GDP. Expect that the government spending more money on children education, now it has a complete education system, because the education can help technology develop, and it also is a good method to increase economic growth. And in America ‘s GDP is $17.4 trillion which is the highest GDP in the world With the line table, we see the curve increase speed is so fast. The united states average GDP growth is 2.39%, and south Africa is only 1.55%. In other diagram is focus on unemployment rate, the America rate is about 6%, this is why USA has very high GDP. In year 2010, the America has

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