Economics: Unemployment and Economic Growth

Play an AI-generated podcast conversation about this lesson

What is a potential consequence of increasing government spending to stimulate economic growth?

A decrease in government revenue
A decrease in inflation
A decrease in unemployment
An increase in prices due to increased demand (correct)

What is a goal of supply-side policies, such as deregulation?

To decrease unemployment
To increase government revenue
To improve the business environment and increase efficiency (correct)
To reduce inequality

Why might a government impose taxes on certain activities?

To reduce inequality
To discourage certain activities (correct)
To increase government revenue
To stimulate economic growth

What is a potential consequence of redistributive policies, such as progressive taxation?

Richer workers may feel unfairly penalized and emigrate (C) Signup and view all the answers

What is a goal of demand management policies, such as monetary and fiscal policy?

To stabilize the economy and manage aggregate demand (D) Signup and view all the answers

What is the main reason for the incidence of tax falling on the seller in an elastic good?

The price elasticity of demand is high (C) Signup and view all the answers

What is the formula to calculate the inflation rate using the Consumer Price Index (CPI)?

Inflation rate = (Weighted average price in year x / Weighted average price in base year) × 100 (B) Signup and view all the answers

What is the primary consequence of hyperinflation?

Money fails to be a good store of value (B) Signup and view all the answers

What is the term for a decrease in the general price level of goods and services?

Deflation (A) Signup and view all the answers

What is the main indicator of the labour market?

Labour force participation rate (B) Signup and view all the answers

What is the consequence of unemployment on the economy?

Decrease in government tax revenues (A) Signup and view all the answers

What is the formula to calculate the Real GDP?

Real GDP = Nominal GDP / CPI × 100 (C) Signup and view all the answers

What type of unemployment occurs during a recession?

Cyclical unemployment (A) Signup and view all the answers

What is the consequence of economic growth on the Real GDP per capita?

It increases the Real GDP per capita (B) Signup and view all the answers

What is the main goal of demand management policies?

To stabilize the overall level of economic activity (D) Signup and view all the answers

What type of unemployment occurs when consumer demand for goods and services changes with the seasons?

Seasonal Unemployment (A) Signup and view all the answers

What is the term for a significant decline in economic activity that lasts more than a few months?

Economic Recession (B) Signup and view all the answers

What is the main advantage of economic growth?

Increases the Standard of Living (D) Signup and view all the answers

What is the Human Development Index used to measure?

Human and Economic Development (C) Signup and view all the answers

What is the threshold value for high human development in the Human Development Index?

0.8 (C) Signup and view all the answers

What are the three components of the Human Development Index?

Standard of living, life expectancy, and literacy rate (A) Signup and view all the answers