Economic Growth Chapter 25 (Exam Revision) Flashcards
1
Q
Definition of Budget Deficit
A
The amount by which Government spending is greater than revenue..
2
Q
What are the Macroeconomic Objectives?
A
Economic Growth
Reduce unemployment
Protect environment
Balance payments
redistribution of income
Controlling inflation
3
Q
Definition of Economic Growth
A
Increase in the level of output by nation.
4
Q
What is National Income?
A
Value of income, output and expenditure over a period of time.
5
Q
Definition of Gross Domestic Production
A
The market value of all final goods and services produced in a period.
6
Q
What is Inflation and why is it a limitation?
A
Inflation-Increase in prices can cause misleading growth rates (Adjust GDP for inflation).
