4.1.1 Growing economies

Question 1

What are some features of a strong economy?

Answer 1

• Low unemployment.
• Growth in GDP.
• Stable inflation.
• Business investment.
• Favourable government policies.

Question 2

What are the pros and cons of high growth?

Answer 2

Pros:
- Economic development.
- Increased employment.
- Foreign investment.

Cons:
- Environmental concerns.
- Overinvestment and debt.
- Dependency on exports.