Economic Growth

Which factor mean that economic growth caused by rising productivity might not necessarily improved quality of live

• There will be more income in total to share out

• There is an unequal distribution of income

• Higher level of income should generate higher levels of taxation

• More people will be employed to produce a higher level of output

A period of declining economic growth with (-) in at least two successive quarters

• Economic Activity

• GDP

• Recession

• Trough

The total value of the final goods and services in an economy over a given period of time

• Trough

• GDP

• Economic Activity

• Sustainable Economic Growth

A rate of economic growth, which will continue in the long run and is unlikely fallback to lower level in short period time

• Recession

• GDP

• Sustainable Economic Growth

• Trough

Total output measured in current prices

• Real GDP

• Nominal GDP

• Base Year

• Constant Prices

What is most likely to cause recession?

• a decrease in business optimism

• a decrease in unemployment

• an increase in government spending

How is economic growth measure?

• Changes in real GDP

• Changes in living standards

• Changes in population sizes

• Changes in consumer expenditure

Which ONE would promote Economic Growth?

• Low Inflation

• Low Expenditure of training

• Low Investment

• Low Skills level

The price index of all domestically produced goods and services

• GDP deflator

• Base Year

• Price index

• Constant Prices

What causes of a fall in the price level is unlikely to result in a recession?

• expectations of a fall in the price level

• advances in technology

• collapse of the banking system

• reduction in international competitiveness