ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There was increased demand which caused inflation.
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The cost of living rose by 3.3%
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There was positive economic growth
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The output of the industrial sector rose by 3.3%
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Detailed explanation-1: -Between 2014 and 2015 the Polish economy expanded at a rate of 3.3%. What necessarily follows from this statement? There was increased demand which caused inflation.
Detailed explanation-2: -In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well. When real GDP is growing strongly, employment is likely to be increasing as companies hire more workers for their factories and people have more money in their pockets.
Detailed explanation-3: -Economic growth increases state capacity and the supply of public goods. When economies grow, states can tax that revenue and gain the capacity and resources needed to provide the public goods and services that their citizens need, like healthcare, education, social protection and basic public services.
Detailed explanation-4: -The correct option is b. an increase in the proportion of the population that is college educated. When an increasing proportion of the population is educated, there is more skilled labor force available. A skilled labor force has higher productivity.