1.8 government

Question 1

economic stabilisation

Answer 1

Economic stabilisation is when the level of economic activity is neither too strong nor too weak.

Question 2

GDP

Answer 2

Gross domestic product (GDP) is the most common measure of the level of economic activity and represents the total value of finished goods and services produced by a country normally over three months or a year.

Question 3

redistrubution of incomes

Answer 3

Redistribution of income is a key function of governments in a mixed economy where policies are used to reduce income inequality so that all people can enjoy reasonable living standards.

Question 4

subsidies

Answer 4

Subsidies are cash payments or tax offsets from the government to consumers or producers. They act as an incentive to encourage a particular activity.