Macro Economic Objectives - Economic Growth - GDP

Question 1

how is economic growth measured

Answer 1

increase in GDP overtime

Question 2

what is GDP

Answer 2

total value added of GaS produced in geographical limits of a country in a year

Question 3

what is the difference between nominal and real GDP

Answer 3

nominal does not take account inflation
whereas
real gdp takes into account inflation therefore it is much more accurate

Question 4

what does economic growth allow

Answer 4

living standards
creates jobs and gives better tax revenue

Question 5

what are the benefits of economic growth (4)

Answer 5

increase employment
increase living standards
reduction in poverty
higher tax revenue

Question 6

what are the negatives of economic growth (5)

Answer 6

greater inequality
inflation rates
sustainability
negative externalities
poor work-life balance

Question 7

What is another way to measure an economy using GDP per capita

Answer 7

HDI giving a more accurate information on a country because it takes into account
life expectancy
mean years of schooling
expected years of schooling
GDP per capita

Question 8

What determines economic growth (7)

Answer 8

business investment
size of workforce
education and training
changes in tech
labour productivity
natural resources
government policies

Question 9

What are the 4 government policies to influence economic growth

Answer 9

Supply side
Monetary
Fiscal
Grants