1. Recession is when real GDP declines over a period of 6 months or more = to two successive
quarters.
2. Nominal GDP is GDP at current prices that has been adjusted for inflation as yet,
real GDP is GDP that has been adjusted for inflation, overral GDP is the monetary value of final
goods and services rendured.
3. higher economic growth means that there would be more government revune this could mean
individuals and business are doing better and govement could focus on improving infastruce such as
building hospitals and that will then create jobs leading to the unemployment being less.
The would be an improvement in the living standard more economic activity as householders have
more disposable income improving their purchasing power this will then lead to them being for
satisfied with their living standards.
4. Improved living of standards, An increase in GDP can also lead to an improvement in the standard
of living for individuals and households. Additionally, a growing economy can lead to technological
advancements and innovations,
Reduced employment, An increase in Gross Domestic Product (GDP) can lead to increased
employment opportunities as businesses expand and invest firms require more workers to meet the
rising demand for goods and services, leading to a decrease in unemployment rates.
5. Investment in physical capital, such as machinery, equipment, and infrastructure, can also
contribute to economic growth. This type of investment enables firms to increase their output and
productivity, leading to higher profits and more job opportunities. Infrastructure investment, such as
building roads, bridges, and ports, can increase the connectivity of regions and enable the efficient
movement of goods and people. This can lead to the development of new markets and industries,
which can drive economic growth. Technological progress is a significant driver of economic growth
because it increases the productivity of workers and firms. Technological advancements can lead to
the development of new and more efficient production techniques, which can lower costs and
increase output. Additionally, new technologies can create entirely new industries and markets,
generating new job opportunities and driving economic growth.
6.