growth of econs

Question 1

main roles of the government

Answer 1

1. the provision of public goods and services
2. the provision of welfare services
3. the regulation of business enterprise
4. macro Econ management

Question 2

Macroeconomic objectives

Answer 2

1. economic growth
2. price stability (low inflation)
3. Full employment (Low UE)

Question 3

econ growth para

Answer 3

economic growth is the increasing capacity of the economy to satisfy the material wants of its members. Economic growth occurs when the government finds ways to shift the economy’s production possibility frontier outwards.. The Government aims to achieve sustainable economic growth - a rate of growth which can be maintained without creating other significant problems such as inflation on environmental pressures. Due to a trade of between growth today and living standards in the future economic growth rate of 3-3.5% p.a is seen as being a reasonable target. Thats enough to achieve an acceptable rate of unemployment and yet not high enough to create pressure of prices. Essentially sustainable economic growth is built around the goal increasing our standard of living whilst maintaining resources so they do not deplete and will remain available for the future. A high economic growth rate means an increase in disposable income, increasing inflation and decreasing unemployment. if economic growth is too high, hyperinflation can occur which is not good.