economic growth

Question 1

benefits of economic growth

Answer 1

higher real gdp higher tax revenues so more government spending
high profit and investment
innovation and high quality
higher living standard and more employment
d pull inflation
depletion
bop deterioate

Question 2

recessions

Answer 2

high budget deficit and lack export led growth
low consumer confidences
high unemployment Low incomes and low consumption
low investment
it does mean low inflation and it depends on how much government spending

Question 3

limits of gdp as measure of living standard

Answer 3

population changes so gdp per capita is bettee
informal economy but gdp its standard and easily comparable
income distribution and healthcare and education
living standard is subjective so impossible to actually measure

Question 4

will cutting tax lead to Econ growth

Answer 4

higher profit and investment and ad and output
less tax evasion but will they reinvent
higher disposable income so consume
less gov rev less spending inequality

Question 5

will rising house prices cause Econ growth

Answer 5

wealth effect - high confidence consumption and ad
causes current acc deficit
higher investment and employment but takes time to be trigggered
depends on how many ppl own houses