Question

Drag each label to the correct category. the economy of a country has been growing at an annual rate of 8%. determine the causes and effects of economic growth in this country. social and community development investment in physical capital improvement in standard of living investment in human capital

Answer 1

Cause: human capital investment, physical capital investment

Effects: improvement in living standards, social and community development

What does Economic growth indicate?

Economic growth rates indicate how quickly the economy is expanding and are calculated by comparing the economic output (measured as the Gross Domestic Product or GDP) of two successive periods.

What are the effects of Economic growth?

• A greater variety of goods and services are now available and ready for consumption in the country.

• High employment levels are required because workers are required to manufacture such a large quantity of goods and services. Employment figures have risen in tandem with GDP growth.

• More employment boosts aggregate demand and generates additional growth as businesses continue to try to meet all demand.

• As demand rises, prices are likely to rise as well, so economic growth would raise the inflation rate.

• Increased productivity and the adoption of new technologies ma

To learn more about Gross Domestic Product or GDP from the given link

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