Economic growth and the economic cycle Flashcards
1
Q
Why is growth seen to be an important policy objective?
A
It increases the availability of goods and services to the population
2
Q
What is LRAS affected by? (3)
A
Quantity of factors of production
Productivity
Technology
3
Q
What are the costs of economic growth? (2)
A
Increased pollution
Damage to natural environment
4
Q
What is the economic cycle?
A
Fluctuations in the level of economic activity over a period of time
5
Q
What is a slump?
A
A severe decline in the level of economic activity
