Consequences of a rise in real GPD

Question 1

a rise in real gdp =

Increased Standard of Living =

Answer 1

As the economy produces more goods and services, individuals and households may have access to a broader range of products and higher-quality services.

Question 2

a rise in real gdp =

Job Creation =

Answer 2

increase in employment opportunities. Businesses expand their operations to meet growing demand, leading to job creation and a reduction in unemployment rates.

Question 3

Higher Incomes:

Answer 3

Economic growth contributes to higher incomes for individuals and families. As businesses thrive and productivity increases, workers may see wage increases, leading to improved household incomes.

Question 4

Increased Tax Revenues

Answer 4

Economic growth often results in higher incomes and profits, leading to increased tax revenues for the government. This can provide additional funds for public services, infrastructure development, and social programs

Question 5

rising real GDP tends to…

Consumer and Business Confidence:

Answer 5

boost confidence among consumers and businesses. Consumers are more likely to spend, and businesses are more inclined to invest and expand when they anticipate a positive economic environment

Question 6

Poverty Reduction

Answer 6

Economic growth can contribute to poverty reduction by providing more job opportunities and increasing incomes. As people move into higher-paying jobs, the overall poverty rate tends to decrease.

Question 7

Health and Education Improvements

Answer 7

Higher GDP leads to higher tax revenues which can provide governments with the resources needed to invest in public health and education. Improved healthcare and education systems contribute to a healthier and more skilled workforce and higher rates of literacy, supporting long-term economic growth

Question 8

real gdp definition

Answer 8

A measure of the total value of all goods and services produced in an economy in a given period of time adjusted for inflation.

Question 9

purchasing power parity definition

Answer 9

used to compare economic productivity and standards of living between countries.

Question 10

GNI

Answer 10

gross national income
GDP plus net income payed into the county for things

Question 11

GDP is…

Answer 11

the measure of the total value of goods and services in an economy

Question 12

A reccision is…

Answer 12

negative economic growth for two consecutive quarters