Economic Growth

Economic growth measures the

• a)     Growth of productivity
• b)     Increase in nominal income
• c)     Increase in output
• d)     None of the above

Which of the following explains the term economic growth

• a)     Increase in per capita production
• b)     Increase in per capita real income
• c)     Structural change in the economy
• d)     All of the above

Potential economic growth is a situation where an economy's productive capacity improved.

• True

• False

AD curve shift to right to show potential economic growth

• True

• False

AD curve shift to right to show actual economic growth

• True

• False

LRAS curve shift to right to show potential economic growth

• True

• False

Which of the following is the reason for an actual economic growth to occur?

• Quality of education improved

• Better technology used

• Household's income level increase

• Discovery of new resources

Which of the following are the reasons for a potential economic growth to occur?

• Quality of education improved

• Better technology used

• Household's income level increase

• Discovery of new resources

A period of macroeconomic expansion or growth, followed by a period of contraction, or decline.

• Business Cycle

• Circular Flow

• Equilibrium

• GDP

Economic growth can be seen by an outward shift of

• a)     The Production Possibility Frontier
• b)     The Gross Domestic Barrier
• c)     The Marginal Consumption Frontier
• d)     The Minimum Efficient Scale