ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Falling investment
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Deflation
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Low confidence
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High employment
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Below average growth
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Detailed explanation-1: -An economic boom is an often-short-lived period of rapid growth of real GDP resulting in lower unemployment, accelerating inflation rate and rising asset prices. A boom occurs when real GDP is expanding much faster than the estimated trend rate of growth and this can lead macroeconomic overheating.
Detailed explanation-2: -The upswing of the business cycle towards a peak is called an economic expansion. An economic expansion is associated with: increase in production/output • decrease in unemployment • increase in wages • increase in consumer spending.
Detailed explanation-3: -Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy. How these factors are combined determines the success or failure of the outcome.
Detailed explanation-4: -BLS defines full employment as an economy in which the unemployment rate equals the nonaccelerating inflation rate of unemployment (NAIRU), no cyclical unemployment exists, and GDP is at its potential.