Government & Economic Growth

Question 1

What are the objectives of government

Answer 1

Full employment
Economic growth
Balancing exports and imports
Price stability

Question 2

How does the government achieve these objectives

Answer 2

Fiscal policy
Supply side policy
Monetary policy

Question 3

Example of combining policies

Answer 3

To increase employment the government can increase spending(fiscal) and reduce interest rates(monetary )

Question 4

How is economic growth measured

Answer 4

GDP

The government measures the value of the country’s output and calculates the rate at which it has risen

Question 5

Why is GDP per capita an average figure

Answer 5

GDP is distributed unevenly throughout the population

Question 6

Causes of economic growth

Answer 6

Investment 
Change in technology
Workforce
Government policies
Natural resources
Larger population

Question 7

Benefits of economic growth

Answer 7

Increased business confidence
Higher living standards
Increased output

Question 8

Costs of economic growth

Answer 8

Increased inequalities in wealth
Inflation
Depletion of natural resources