Economic Growth L3-L4

Question 1

What is economic growth?

Answer 1

The growth in a country’s economic output over time

Question 2

what is economic growth measured in ?

Answer 2

GDP which is also equivalent to incomes

Question 3

What is the definition of recession?

Answer 3

Two consecutive quarters of negative economic growth

Question 4

What was the UK’s economic growth in 2023 ?

Answer 4

0.3%

Question 5

Is economic growth measured yearly or quarterly?

Answer 5

Both - it is the rise or fall in GDP from one year to the next

Question 6

What is the difference between measuring economic growth using nominal and real GDP?

Answer 6

Nominal GDP takes in all the output/income but doesn’t account for inflation

Real GDP takes into account inflation over a time period

Question 7

What is GDP per capita equivalent to and also the equation?

Answer 7

It is equivalent to GDP per person:

Formula = Total GDP // no. of population

Question 8

What are the 3 different ways economic growth is measure?

Answer 8

changes in economic output over time measured in GDP (goods produced domestically)

GNP - market value of products produced over a period of time (both domestically and foreign)

Unemployment rates - low unemployment signals thriving economy full of jobs

Question 9

What are the limitations of using GDP statistics to view economic growth?

Answer 9

There are too many sources
inaccuracy of calculations
human error
only predictions
Figures will get adjusted later on

Question 10

What are the different measures of national income?

Answer 10

GDP - gross domestic product

GNP - gross national product (accounts for both a countries domestic and foreign product)

GVA - gross value added
= ( GDP - direct taxes + subsidies on goods)

GNI - gross national income (the value of goods/ services produced by a country over a period of time + payments from overseas investments)