Economic Growth

Question 1

What is economic policies definition?

Answer 1

Actions taken by the government to influence economic performance.

Question 2

What is the macro model?

Answer 2

• Economic activity
• Economic performance
• Measure against objectives
• Use economic policy to correct outcomes

Question 3

What are signs of economic performance?

Answer 3

• Stable rate of inflation
• Low rate of unemployment
• Steady economic growth
• Acceptable B of P (balance of payments)

Question 4

If economic growth is lagging behind long term trend then what change is needed?

Answer 4

Accelerate real growth

Question 5

What is fiscal policy tools and who is the agency?

Answer 5

Taxes, spending and investment

Agency: Government

Question 6

What is monetary policy tools and who is the agency?

Answer 6

Money supply and interest rates.

Agency: Central Bank

Question 7

What are supply side tools and who is the agency?

Answer 7

Rules, regulations and incentives.

Agency: Government

Question 8

Economic growth analytical and evaluative process

Answer 8

• Are the number reliable, are we growing as quickly as we think we are?
• How much is the economic growth?
• Is it sustainable growth?
• Does it harm the environment?
• Is it causing inflation?
• Impact on population (per capita)
• Distribution of economic growth?
• Is quality of life any better?

Question 9

What is economic growth?

Answer 9

Economic growth is an increase in the capacity of an economy to produce goods and services - measured by comparing GDP in different periods of time.