What is Economic Growth?

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Transcript What is Economic Growth?

SECTION 1
MANAGING THE
ECONOMY
GCSE ECONOMICS: UNIT 12
Managing the economy
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SECTION 1
MANAGING THE
ECONOMY
GCSE ECONOMICS: UNIT 12
Managing the economy
1.1 Economic Growth
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ECONOMY
What is Economic Growth?
• Put simply, “Economic growth is an increase in the
value of goods and services produced by an
economy over time”
• Why does economic growth matter….what are the
benefits of economic growth?
• Complete your ideas on the sheet provided, using
the internet to independently research ideas
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Why economic growth matters
• Economic growth means that production is increasing
within an economy
• This is important because our standards of living
depend on our access to goods and services
• Without growth people can only enjoy improvements
in their standards of living at the expense of others in
society
• With economic growth we can all potentially be better
off!
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Increased
profit
Increased
capital
investment
Technological
innovation
A rise in
average living
standards
The benefits of
economic
growth
Increased tax
revenues for the
government
The creation
of new jobs
Lower
unemployment
Improved
business
confidence
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Aims of today’s lesson …
•
Identify the key benefits of economic growth
•
Investigate how we measure economic growth
•
Analyse the different components of Gross
Domestic Product
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How do we measure
Economic Growth?
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What is included in GDP?
GDP = C + I +G (X-M)
C = Consumption
I = Investment
G = Government spending
X-M = Net Exports
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Consumption (C)
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Consumption spending is closely
related to disposable incomes
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Investment (I)
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Government Spending (G)
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This covers spending on UK
products/services by
foreign nationals
Exports (X)
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This covers spending on
foreign products/services
by UK citizens
Imports (M)
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GDP: Lets look at the figures...
The Components of GDP
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Plenary: Interactive Questions
• You will be asked 5 key questions from Today’s
lesson
• Read each question carefully
• Choose the correct answer and then click on
‘Submit’
• Be prepared to discuss your answers
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Extension Task…
• What effect has the eurozone crisis had on UK
Economics Growth?
• Open the ‘Extension Task’ from the student
shared area
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Aims of today’s lesson …
•
Identify the key benefits of economic growth
•
Investigate how we measure economic growth
•
Analyse the different components of Gross
Domestic Product
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ECONOMY
Amazing end game…
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Taking ownership of your
learning….
• In small groups you will prepare a short 20 minute lesson on
one of the following topics;
•
•
•
•
The costs and benefits of UK economic growth
Unemployment within the UK (youth, adult, long term)
The causes and consequences of inflation
Exchange rates and their impact on UK Balance of Payments
• I want you to teach your chosen topic to the rest of the class
in the MOST CREATIVE way you can think of.’
• The focus should be on the UK