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Economics IGCSEPDF 102
118 pagesrevision 46932
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5.1 Economic Growth
Definition & Explanation
5.2 Employment & Unemployment
Definition & Explanation
Key Terms
Costs / Limitations
Types of Unemployment
Causes of Economic Growth
Benefits of Economic Growth
Policies to Reduce Unemployment
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Inflationarypressures if demand outpaces supply.
Environmental damage and income inequality.
Higher employmentandincome levels.
Increased tax revenue and improved public services.
Greater business confidence and FDI inflows.
Investment
in
capitalgoods
and
infrastructure.
Technological progress improving productivity. Growth
in labour supply and human capital. Political stability
and favourable business environment.
GDP,Real GDP, Investment, Productivity, Living standards.
Fiscalpolicy –increase governmentspending or reduce taxes.
Monetary policy – lower interest rates to encourage investment.
Supply-side policies – education, training, and labour market reforms.
Frictional – temporary between jobs.
Structural – mismatch of skills due to industrial change.
Cyclical – caused by a fall in aggregate demand.
Seasonal – occurs in industries with seasonal demand (e.g., agriculture, tourism).
Employmentrefersto people of working age engaged in productive work for payment.
Unemployment occurs when individuals who are able and willing to work cannot find a job.
Economic growth is the increase in total output of goods and services in an economy over time,
measured by real GDP.
It reflects improved living standards and employment opportunities.