Economic Growth and Employment Quiz

What is stable economic growth better for?

• Increasing pollution

• Planning for the future

• Encouraging inflation

• Reducing investment

What does a fall in the economic growth rate indicate?

• Economic recession

• No change in output

• Output is increasing at a slower rate

• Output is decreasing

What can expansionary fiscal policy do to promote economic growth?

• Encourage consumer spending

• Reduce interest rates

• Increase taxes

• Limit investment

Can expansionary fiscal policy always promote economic growth?

• Yes. It always increases AD.

• No. Eventually AS needs to expand.

What may prevent households from spending more despite lower taxes?

• Lack of confidence

• Increased savings

• Low interest rates

• High confidence

What is the labour force participation rate?

• The proportion of working-age people in the labour force

• The total population of a country

• The total number of unemployed

• The number of people in full-time education

What is one reason for a higher labour force participation rate?

• High retirement age

• Social attitudes towards working women

• Low wages

• High unemployment

When employment rises what can happen to unemployment?

• It will always increase

• Have no effect

• It can either increase or decrease

• It will always decrease

What is one factor that influences the labour market participation rate?

• The number of job vacancies

• The availability of childcare places

• The number of retirees

• The level of inflation

What is the definition of unemployment?

• Being without a job

• Being retired

• Being without a job while willing and able to work

• Being employed in a job