economic growth

Econ Growth and Unemployment Stats – Countries with Own Currency

Econ Growth and Unemployment Stats – Countries with Own Currency

Readers Question I was wondering if you have any graphs plotting UK GDP and Unemployment against other economies which have monetary independence and their own currency. I often see graphs comparing the US with the UK. Are there any which include Sweden, Norway, Switzerland and other countries?click to enlarge Economic growth rates for selected countries.Australia has weathered the global recession well. Helped by strength of its commodity export market. Sweden experienced one of the deepest recession (-5.0% in…

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The Importance of Increasing Income Per Head

Readers Question: Evaluate The importance of increasing income per head for an economy. Higher income per head means that GDP per Capita is higher. This means there is an increase in living standards as more people can consume higher levels of goods and services. Increased GDP per Capita will improve government finances. This is because people will pay more income tax and more VAT; firms will pay more corporation tax. Also the government will spend less on income support and unemployment benefits. Therefore the budget deficit will decrease. Also the government could…

The Rahn Curve – Economic Growth and Level of Spending

The Rahn Curve – Economic Growth and Level of Spending

Readers Question: Does the Rahn Curve support the empirical evidence? If not, why not? Can you prove that there is a relationship between the level of Government Spending and GDP growth? The Rahn Curve suggests that there is an optimal level of government spending which maximises the rate of economic growth. Diagram of Rahn CurveProponents of the Rahn curve tend to use it as a tool to argue that government spending hinders economic growth. For example, the Centre for Freedom and…