IGCSE Economic Growth and Inflation

What is Economic Growth?

• Increase in the inflation rate

• Increase in the country’s output over time

• Decrease in the unemployment rate

• Increase in the country’s population

How is Economic Growth measured?

• By the Consumer Price Index (CPI)

• By the unemployment rate

• By the Gross Domestic Product (GDP

• By the population growth rate

What is a limitation of GDP as a measure of Economic Growth?

• It does not account for the distribution of income

• It measures the inflation rate

• It measures the unemployment rate

• It accounts for the population growth rate

What is the Economic Cycle?

• The sequence of growth and decline in an economy

• The sequence of inflation and deflation in an economy

• The sequence of employment and unemployment in an economy

• The sequence of increase and decrease in population in an economy

How does Economic Growth impact Employment?

• Economic growth leads to higher unemployment

• Economic growth has no impact on employment

• Economic growth leads to lower unemployment

How does Economic Growth impact the Standard of Living?

• Economic growth decreases the standard of living

• Economic growth increases the standard of living

• Economic growth has no impact on the standard of living

How does Economic Growth impact Poverty?

• Economic growth increases poverty

• Economic growth decreases poverty

• Economic growth has no impact on poverty

What is the impact of Economic Growth on the Productive Potential of an economy?

• Economic growth decreases the productive potential

• Economic growth increases the productive potential

• Economic growth has no impact on the productive potential

How does Economic Growth impact Inflation?

• Economic growth leads to deflation

• Economic growth leads to inflation

• Economic growth has no impact on inflation

What is the impact of Economic Growth on the Environment?

• Economic growth leads to environmental degradation

• Economic growth leads to environmental improvement

• Economic growth has no impact on the environment