BUISENESS MANAGEMENT
BUSINESS PLANNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A decrease in GDP
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An increase in GDP
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A decrease in the number of SMEs
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An increase in the number of SMEs
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Detailed explanation-1: -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-2: -Economic growth is an increase in the production of goods and services in an economy. Increases in capital goods, labor force, technology, and human capital can all contribute to economic growth.
Detailed explanation-3: -Which of the following would cause an increase in economic growth? An increase in the quality of human capital and a decrease in investment spending.
Detailed explanation-4: -Over time, the growth in GDP causes inflation-inflation, if left unchecked, runs the risk of morphing into hyperinflation.