Economic growth

Question 1

Economic growth

Answer 1

An increase in actual or potential output of an economy (measured using real GDP and real GDP per capita - per person)

Question 2

Government target (Economic growth)

Answer 2

Is to achieve sustainable economic growth

Question 3

Sustainable growth

Answer 3

Meet their everyday needs but does not stop future generation from also meeting needs. It is presented through percentages in the future

Question 4

Benefits (Economic growth)

Answer 4

Increase in output -> Decrease Unemployment -> Increase Yd -> people can spend more -> Increase living standard

Increase output -> decrease unemployment -> Decrease Government spending on unemployment benefits -> increase Tax revenue -> Government budget improves

Increase in international status and power in organisations

Question 5

Costs (Economic growth)

Answer 5

Inflation increases -> Standart of living decreases

Environmental damage and depletion of natural resources

Could increase unemployment if growth is caused by an increase in use of technology -> Decrease quality of life and people need to adopt new skills