Economic growth, real GDP and living standards

What this note covers

1. Economic growth as a macroeconomic objective
2. Three ways of measuring GDP
3. Worked example: converting nominal GDP to real GDP in Verdemont
4. Why real GDP understates or misses aspects of living standards
5. Growth, the business cycle and interrelationships with other objectives
6. Potential output and the sustainability of growth
7. How economic growth is examined and what earns full marks

7 sections · 12 key terms & formulas · 6 common mistakes