Understanding Economic Growth: Sustainable vs Unsustainable Growth

The video tutorial explains real GDP and its role in economic growth, focusing on the differences between short-run and long-run macroeconomic equilibrium. It discusses unsustainable economic growth, which leads to inflation, and sustainable growth, which increases real output and employment without significant price level changes. The tutorial uses aggregate demand and supply curves to illustrate these concepts.

What is real GDP and how is it adjusted for inflation?

Explain the relationship between aggregate demand and aggregate supply in the context of economic growth.

What is the significance of the long run aggregate supply curve in economic growth?

What happens to the price level when there is short run unsustainable growth?

Describe the difference between sustainable and unsustainable economic growth.

How does an increase in aggregate demand affect the economy in the short run?

In what way does economic growth impact employment levels in the long run?