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What are the potential advantages of economic growth?
The potential advantages of growth include
• More goods and services are accessible to satisfy more want and requirements
• Higher employment permits higher wages so that poverty is decreased.
• Employees earn higher incomes for producing more goods and more services
• Raised pollution,
• Depletion of non renewable natural resources
• The advantages may be narrowly distributed to the wealthy
• Growth may be not sustainable and threaten the well being of future generations.
Limitations of the theory of rational expectations: Critics of this theory note that if policy makers have more information about the economy or their own actions than d
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Four different measures of GDP Using circular flow model we see that there are 4 equivalent ways of measuring GDP: Using the definition: market value of all finished goo
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Suppose home cost pricing prevails in international trade, while world output is declining. Consider two economies, A and B, both having floating exchange rates and the same moneta
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