2.1-Economic growth Flashcards
What is economic growth?
Economic growth is the increase in the production of goods and services over a certain period, usually measured by GDP.
True or False: Economic growth can occur without an increase in the population.
True
Fill in the blank: Economic growth is typically measured by the increase in __________.
Gross Domestic Product (GDP)
What does GDP stand for?
Gross Domestic Product
Name one factor that can lead to economic growth.
Increased investment in capital
Multiple Choice: Which of the following is NOT a method to measure economic growth? A) GDP B) GNP C) CPI D) NNP
C) CPI
What is the difference between nominal GDP and real GDP?
Nominal GDP is measured at current prices, while real GDP is adjusted for inflation.
True or False: Economic growth always leads to an improvement in living standards.
False
What is potential output?
Potential output is the maximum level of output an economy can sustain over the long term without increasing inflation.
Fill in the blank: An increase in __________ can lead to economic growth through improved productivity.
technology
What role do government policies play in economic growth?
Government policies can influence growth by affecting investment, consumption, and overall economic environment.
Multiple Choice: Which of the following is a consequence of rapid economic growth? A) Increased pollution B) Decreased employment C) Lower GDP D) Increased leisure time
A) Increased pollution
What is the business cycle?
The business cycle is the fluctuation in economic activity that an economy experiences over time, consisting of expansion and contraction phases.
True or False: Economic growth can be measured in both short-term and long-term perspectives.
True
What is a key indicator of economic growth?
Increase in real GDP per capita
Fill in the blank: __________ refers to the total value of goods produced and services provided in a country during one year.
Gross Domestic Product (GDP)
What is the significance of the GDP growth rate?
The GDP growth rate indicates the health of the economy and is used to compare economic performance over time.
Multiple Choice: Which of the following can negatively impact economic growth? A) High unemployment B) Increased investment C) Technological advancements D) Low inflation
A) High unemployment
What is the role of innovation in economic growth?
Innovation drives productivity improvements, leading to higher output and economic growth.
True or False: Economic growth can be achieved through both supply-side and demand-side policies.
True
What is an aggregate demand?
Aggregate demand is the total demand for all goods and services in an economy at a given price level and time.
Fill in the blank: __________ policies aim to increase economic growth by improving the supply of goods and services.
Supply-side
What is the impact of inflation on economic growth?
Moderate inflation can encourage spending and investment, but high inflation can hinder economic growth.
Multiple Choice: Which of the following is a long-term driver of economic growth? A) Short-term stimulus B) Increased consumer confidence C) Structural reforms D) Seasonal employment
C) Structural reforms
