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One of the aims of government is to achieve economic growth - Leaving Cert Economics - Question c - 2017
Question c
One of the aims of government is to achieve economic growth. (i) Explain the term economic growth. (ii) Outline two reasons why it is important for an economy to a... show full transcript
Worked Solution & Example Answer:One of the aims of government is to achieve economic growth - Leaving Cert Economics - Question c - 2017
Step 1
Explain the term economic growth.
Answer
Economic growth refers to the increase in a country's production of goods and services over a period of time, typically measured as the rise in Gross National Product (GNP) or Gross Domestic Product (GDP) per capita. It signifies an improvement in the overall economic health of a nation, indicating that its economy is expanding and that the living standards of its citizens may improve as a result.
Step 2
Outline two reasons why it is important for an economy to achieve economic growth.
Answer
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Increased Employment: Economic growth generally leads to higher demand for goods and services, which consequently increases the demand for labor. This creates more job opportunities, reducing unemployment rates and improving the standard of living for individuals.
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Improved Government Finances: As economic growth occurs, government revenues through taxes also increase. This allows the government to invest more in public services, infrastructure, and welfare programs, reducing poverty and improving quality of life.