level: Economic Growth
Questions and Answers List
level questions: Economic Growth
| Question | Answer |
|---|---|
| Why do Governments want Economic Growth | -Governments want High Economic Growth - not Too High -This is because Economic Growth Improves the Standard of Living in the Nation |
| Why do Governments want Low Inflation | -Government in Britain aims for 2% Inflation -Monetary Policy Committee of the Bank of England [MPCBE] uses Monetary Policy to get the Target Rate -Inflation can make Standards of Living worse off, and make basic Commodities be Rationed |
| Why do Governments Unemployment down | -Governments aim for Full Employment -More People Employed means the Economy is more Productive -AD will Increase as well as more People have an Income to Spend and Tax |
| Why do Governments want Equilibrium in the Balance of Payments [BoP] | -Earnings of Exports and other Inflow to be Balancing the Spending on Imports and other Outflows -More Desirable than a Long Term Deficit, or Surplus in the BoP |
| What other Objections may Governments stride for? | -Balancing the Budget -Protecting the Environment -Income Equality |