Week 4- Economic growth lecture

Question 1

Measuring Economic Growth by increase in___

Answer 1

1. real GDP over some time period.

2. real GDP per capita over some time period.

Question 2

Real GDP per capita___

Answer 2

Dividing Real GDP by the size of population.

Question 3

Arithmetic growth find the approximate number of years required to___

Answer 3

Double real GDP.

Question 4

3 ways to qualify real GDP:

Answer 4

1. Improved product and services.
2. Added leisure.
3. Other impacts- doesn’t account for the effect on environment and quality of life.

Question 5

Growth accounting-

Answer 5

Used by Council of Economic Advisers to access the importance of the supply-side elements.