Economic growth is measured by the increase in a country’s total output or real Gross Domestic Product(GDP) or Gross National Product (GNP). Investors also pay close attention to the corporate profits of GDP reports, which provides data on entire economic sectors. In this discussion, market c… There must be other ways of discussing asymmetric information – ways that illustrate the concept while sparking conversation and grounding the idea in a real world example. Economic growth transformed the world into a positive sum economy where more people can have access to more goods and services at the same time. Examples of Demand-Pull Inflation Example #1 – US Housing Price Inflation in 2006. Credit Default Swaps CDS full form was a new type of insurance product that guaranteed against Defaults on … By David Turner SMU Office of Research & Tech Transfer – The stories of an economy – why it grew or didn’t, why it created jobs or didn’t – are often contested.By politicians, of course, but especially by economists whose job it is to explain an economy’s history and predict its future. Deflation (b.) Example: When a Corn crop production increases the farmers decrease the price of the crop so that they can sell off their produce. The economic growth of a country is the increase in the market value of the goods and services produced by an economy over time. There are a lot of such factors which affect the economy and not all variations could be provided, however, these examples give relevant reasons and concept of economics. For example, the Works Progress Administration put 8.5 million people to work. The Civil Works Administration created 4 million new construction jobs. The marginal production starts to diminish upon using 30kg fertilizer adding 10kg more cause production drop from 170 to 90 tons. This has been a guide to Economic Examples. The study of economics is concerned about each and every factor and entity that contributes to and benefits from society, where factors include product distribution, as well as consumption of goods and services and entity, involves individuals, business entities, governments and also nations. It is the impact of the surge in demand due to rapid economic growth (c.) It is the impact of the price levels of previous year on the calculation of inflation rate (d.)None of the statements (a), (b) and (c) ‘given above is correct in this context #6. GDP growth is also closely monitored by investors, especially those heavily involved in equities. Here we discuss various examples of Economics like Supply Demand, Opportunity Costs, sunk cost and Trade War, Etc.. You can also go through our other suggested articles to learn more –, All in One Financial Analyst Bundle (250+ Courses, 40+ Projects). While the global average growth rate is about 2.7 percent, India reported a whopping seven percent last year, with China roughly the … Let’s say the product costs $100 to the company and the production capacity is 5000 units. CFA® And Chartered Financial Analyst® Are Registered Trademarks Owned By CFA Institute.Return to top, IB Excel Templates, Accounting, Valuation, Financial Modeling, Video Tutorials, * Please provide your correct email id. In January, the World Bank published its latest biannual Global Outlook report, which measures economic growth in almost 200 countries by calculating the year-on-year percentage change in GDP.. India and China are usually considered to be stars in this respect. Start Your Free Investment Banking Course, Download Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others. 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