Y10 Economics - C29 Economic Growth

What is economic growth?

• A decrease in national output

• An annual increase in the level of national output

• A measure of inflation

• A decline in GDP

What does GDP stand for?

• General Development Product

• Gross Development Plan

• General Domestic Price

• Gross Domestic Product

Which of the following is NOT a component of nominal GDP?

• Investment expenditure

• Government spending

• Consumption expenditure

• Tax revenue

What does real GDP measure?

• The value of national income adjusted for inflation

• The total value of exports

• The nominal value of goods produced

• The average income per person

What is a recession?

• A rise in employment levels

• A period of economic growth

• A fall in GDP for two consecutive quarters

• An increase in consumer spending

Which phase of the business cycle is characterized by high unemployment?

• Recovery

• Slump

• Boom

• Peak

What is one positive consequence of economic growth?

• Decreased standard of living

• Lower consumer confidence

• Higher tax revenues

• Increased unemployment

Which of the following is a negative consequence of economic growth?

• Improved standard of living

• Increased employment

• Environmental effects

• Higher tax revenues

What is fiscal policy?

• Policies to increase competition

• Adjusting interest rates to control inflation

• Regulations on foreign trade

• Government spending and tax policies to influence the economy

What does supply-side policy aim to do?

• Increase government spending

• Boost consumer confidence

• Reduce inflation

• Increase the productive capacity of the economy