Questions and Answers
What external factor can prevent an economy from growing?
A lack of skilled labor.
Which unemployment rate do most economists consider to be acceptable in the United States?
To help encourage economic growth, what can a country do?
What do economists use gross national product (GNP) to measure?
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What does an increase in gross domestic product (GDP) signify about a country's economy?
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Study Notes
Economic Growth Concepts
- External factors can hinder economic growth, particularly through a shortage of skilled labor.
- Economists often consider an unemployment rate around 4 to 5% as acceptable for the United States, indicating a balanced economy.
Economic Strategies
- Countries can foster economic growth by investing in research and development, rather than halting international trade or laying off workers.
- Lowering educational requirements may not be the best approach to stimulate growth.
Economic Measurements
- Gross National Product (GNP) is utilized by economists to assess a country's economic performance, reflecting the value of all goods and services produced by residents.
- An increase in Gross Domestic Product (GDP) signals that a country's economy is on the rise and expanding.
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Description
Test your knowledge about economic growth with these flashcards. Explore key concepts, such as acceptable unemployment rates and factors influencing economic development. Perfect for students and anyone interested in economics!
