1. Define the concept of economic growth and explain the concept of national income/output/expenditure.
- Economic Growth:
- National Output:
- National Expenditure:
- National Income:
2. Describe the Danish business cycle for the last 10 years and include a presentation in a diagram made from data from the Danish State bank in excel.
3. Make an analysis of the economic growth and business cycle based on table A below from The Danish Economy, Autumn 2020.
Economic growth is a steady rate of increase in the value of national output, as it increases real GDP.
Economic growth allows for higher living standards by lowering production costs and increasing wages, improved tax revenues, and helps to generate new jobs.
There are two main ways to measure economic growth: actual growth which is the gross domestic product (GDP) and potential growth which is the trend growth.
On the graph below you can see the Danish business cycle for the last 10 years, 2009-2019. It is the period-to-period real growth (GDP) in percentage terms on the y-axis and the year on the x-axis.
In 2009 the gross domestic product was at -4,9% at a trough and stopped declining and began to increase.
Expansion then occurred in 2010 where the GDP was at 1,9% making the economy at a stable economic development period until 2011 where the rate was at 1,3%