Questions A21 UK economic growth down to 0.4% for third quarter The UK economy grew by 0.4% in the third quarter of the year, figures show, less than previously estimated. The rate fell because the key services sector, which accounts for over 70% of UK economic activity, grew more slowly than had been thought. The UK economy however has been growing for 11 consecutive quarters. A Treasury spokesman said in a statement that the figures highlighted that risks to the UK economy remained despite it being "the fastest growing economy in the G7 last year". "We're leading the pack with the US this year, we have a record high employment rate and the deficit is down," the Treasury said. Source: BBC News December 2015 (Extract) a) Define the term "economic growth". [ 1 ] b ) With the aid of a diagram, illustrate the business cycle and explain the [ 3 ] term "positive output gap". c) Identify three benefits to the UK of economic growth growing "for 11 [ 3 ] consecutive quarters". d) The article identifies risks to the UK economy despite the positive economic growth figures. Analyse one cost to the UK economy of rising economic growth. [3 ]