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4 (a) Which one of the following best describes the term economic growth? It is an increase in: Select one answer - Edexcel - GCSE Business - Question 4 - 2015 - Paper 1
Question 4
4 (a) Which one of the following best describes the term economic growth? It is an increase in: Select one answer. A taxation revenue. B unemployment. C Gross Dome... show full transcript
Worked Solution & Example Answer:4 (a) Which one of the following best describes the term economic growth? It is an increase in: Select one answer - Edexcel - GCSE Business - Question 4 - 2015 - Paper 1
Step 1
Which one of the following best describes the term economic growth?
Answer
The term economic growth refers to an increase in the country's ability to produce goods and services over time. In most contexts, this is best captured by an increase in the Gross Domestic Product (GDP). Therefore, the correct answer is:
C. Gross Domestic Product.
Step 2
Outline one example of an external shock to the UK economy.
Answer
An example of an external shock to the UK economy could be bad weather, which significantly affects agricultural production. For instance, a sudden drought may lead to a reduction in crop yields, thereby increasing food prices and impacting overall economic stability. This illustrates how external factors can have direct consequences on the UK economy.