4.3 Economic growth

What is economic growth?

• The increase in the inflation rate of a country
• The increase in the population of a country
• The increase in the unemployment rate of a country
• An increase in the total value of goods and services produced over time

Real GDP is:

• The value of all goods and services produced in a country within a given period
• The value of all final goods and services produced in a country within a given period, adjusted for inflation

• The total income of a country
• The total wealth of a country

Which of the following statements accurately describes Demand-side sources of economic growth?

• Demand-side sources of growth focus on increasing the factors of production, such as labor and capital.

• Demand-side growth is driven by technological advancements and improvements in efficiency.

• Demand-side sources emphasise boosting consumer spending and government expenditure.

• Demand-side sources primarily involve increasing exports and improving international trade.

Methods of measuring GDP include:

• Gross National Product (GNP) and Consumer Price Index (CPI).

• Inflation rate and unemployment rate.

• Production, income, and expenditure approaches.

• Fiscal policy and monetary policy.

Which of the following is a cost of economic growth?

• Increase in employment opportunities
• Increase in national income
• Increase in standard of living
• Increase in environmental problems