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Hsc Economic Textbook: Topic 3 Summary
Economic growth involves an increase in the volume of goods and services that an economy can produce over a period of time. It is measured by the annual rate of change in real Gross Domestic Product (GDP) i.e the percentage increase in the value of goods and services produced in an economy over a period f one year, adjusted for the rate of inflation
John Maynard Keynes developed a theory which stated that the most important influence on economic growth was the total level of spending in the economy (level of aggregate demand). One of the best ways of understanding this pers…
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