GDP And Economical Growth

Question 1

GDP

Answer 1

Gross domestic product

The total value of out put produces in a economy year

Question 2

Economical growth

Answer 2

The annual percentage change in gdp

Can be at a slow rate if shrinking or growing

Question 3

How can government encourage economic growth

Answer 3

Investment in physical capital such as offer subsidies or lower tax

Improving infrastructure- better transport for liken so increase speed of raw materials ext

Improve of the quality of human capital by investing education

Question 4

What happens when gdp rises

Answer 4

Economy is growing

This leads to more jobs as there is a higher output as more people have more money

Question 5

What happens when gdp goes down

Answer 5

Then the economy is shrinking or contracting

Meaning less jobs as needing less staff to produce products

Higher house prices

Question 6

What does gdp includes

Answer 6

Effects every aspect of the economy such as shopping and health care

Question 7

Limitations of gdp

Answer 7

You only know at present time not what is going to happen in the future