Economics ECONOMICS ECONOMICS

ECONOMI
CS

Economics
Contents
Answer 3............................................................................................................. 2
Answer 4............................................................................................................. 4
References............................................................................................................. 6
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Economics
Answer 3.
Economic growth is considered when level of output rises, GDP changes, along with the
change in real national income. During the boom period, a country’s level of aggregate
demand goes up which ultimately increases the output and economic growth takes place.
There are certain causes of economic growth including technology upgradation, higher
capital investment, labour quality and quantity etc.
Benefits of Economic Growth in UK:
There are various benefits of economic growth like, increased GDP, output, decreased
unemployment rate, reduced government spending, better infrastructure and public services
etc. (CliffsNotes, n.d.).
in the year 2016, when UK decided to withdrew its membership from European Union an
economic slowdown was predicted in terms of fall in aggregate demand. However, opposite
happened and the economy of UK witnessed economic growth in terms of improved
employment rate (Extract B). even, after the BREXIT referendum the GDP of UK went up by
0.4% in Quarter 3, 2019. UK’s economic growth went up speedily from Jul to the month of
September, 2019 after experiencing 0.2% negative growth in the month of April to June,
2019. Output related to production, service and construction all grew in 2019 by 0.1%, 0.5%
and 1.2% respectively in the year 2019 (Mitic, 2020).
Drawbacks of Economic Growth in UK:
There are various benefits associated with the economic growth. Still, there also exists few
costs attached to the economic growth like, rise in inflation, problems related to balance of
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