ECONOMICS IGCSE 9-1 EDEXCEL
(MACROECONOMICS) EXAM 100%
CORRECT
, What is economic growth? - ANSWERSIncrease in the level of output by a nation.
What are the macroeconomic objectives? - ANSWERSRedistribution of income
Reducing unemployment
Environmental protection
Balance of Payments
Economic growth
Controlling inflation
What is GDP? - ANSWERSThe market value of all final goods and services produced
within a country in a given period of time.
What are the limitations of GDP? (any 3) - ANSWERS- Inflation
- Population changes
- Statistical errors
- The value of home produced goods
- The hidden economy (unrecorded paid work)
- GDP =/= living standards
- External costs
What is the effect of boom on growth, employment and inflation? - ANSWERS- GDP
growing fast
-Existing firms expanding, new firms entering market
-Demand will be rising, jobs created, wages rising, profits for firms increasing.
-However, prices may also be rising.
What is the effect of Downturn on growth, employment and inflation? - ANSWERS-
Economy growing at a slower rate
- Demand for goods and services will stop increasing or begin to fall
- Profits fall, Firms stop expanding and unemployment begins to rise.
- Some firms say leave the market
- Prices rise more slowly.
What is the effect of Depression on growth, employment and inflation? - ANSWERS- If
GDP begins to fall the bottom of the cycle is a depression.
- Demand will start to fall for many goods and services, especially non-essentials
- Unemplyment rises sharply, business confidence is very low, bankruptcies rise.
- prices become flat.
What is the effect of recovery on growth, employment and inflation? - ANSWERS- GDP
starts to rise again
(MACROECONOMICS) EXAM 100%
CORRECT
, What is economic growth? - ANSWERSIncrease in the level of output by a nation.
What are the macroeconomic objectives? - ANSWERSRedistribution of income
Reducing unemployment
Environmental protection
Balance of Payments
Economic growth
Controlling inflation
What is GDP? - ANSWERSThe market value of all final goods and services produced
within a country in a given period of time.
What are the limitations of GDP? (any 3) - ANSWERS- Inflation
- Population changes
- Statistical errors
- The value of home produced goods
- The hidden economy (unrecorded paid work)
- GDP =/= living standards
- External costs
What is the effect of boom on growth, employment and inflation? - ANSWERS- GDP
growing fast
-Existing firms expanding, new firms entering market
-Demand will be rising, jobs created, wages rising, profits for firms increasing.
-However, prices may also be rising.
What is the effect of Downturn on growth, employment and inflation? - ANSWERS-
Economy growing at a slower rate
- Demand for goods and services will stop increasing or begin to fall
- Profits fall, Firms stop expanding and unemployment begins to rise.
- Some firms say leave the market
- Prices rise more slowly.
What is the effect of Depression on growth, employment and inflation? - ANSWERS- If
GDP begins to fall the bottom of the cycle is a depression.
- Demand will start to fall for many goods and services, especially non-essentials
- Unemplyment rises sharply, business confidence is very low, bankruptcies rise.
- prices become flat.
What is the effect of recovery on growth, employment and inflation? - ANSWERS- GDP
starts to rise again
