2.5 Flashcards
1
Q
What is used to measure standards of living
A
- Quality and availability of employment
- Income inequality
- Quality housing at affordable prices
- Life expectancy
2
Q
Costs of growth
A
- Effect on the environment e.g. increased pollution
- Balance of payments problems e.g. Higher MPM
- Income distribution leading to inequality
3
Q
Significant factors affecting LRAS
A
- Investment
- Innovation
- Migration
- Changes in birth rate
- Export led growth
- Increased production
4
Q
Significant constraints on economic growth
A
- Absence on capital markets
- Instability of government
5
Q
How does an injection affect AD
A
Increases AD and economic growth. Size depends on the multiplier
6
Q
How does a withdrawal affect AD
A
Reducing AD decreasing economic growth.
