Which Factors Account for Most of the Growth in the High

question 47

Essay

Which factors account for most of the growth in the high growth Asian economies?

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Definitions:

Expansionary Gaps

Situations where actual GDP exceeds potential GDP, leading to inflationary pressure due to high demand.

Contractionary Gaps

Contractionary gaps occur when an economy’s actual output is lower than its potential output, often leading to unemployment and underutilized resources.

Aggregate Demand

The total demand for all goods and services within an economy at various price levels, in a given time period.

Expansionary Gap

A situation where the actual economic output exceeds the potential output, often leading to inflation.