ib econ growth

What does economic growth refer to?

• Increase in nominal GDP
• Increase in real GDP over time
• Increase in population
• Increase in unemployment

What does real GDP measure?

• The monetary value of all final goods and services
• GDP adjusted for inflation
• GDP at current prices
• GDP excluding exports

What is a key cause of short-term economic growth?

• Increase in government regulations
• Increase in the efficiency of resource use
• Decrease in technology usage
• Increase in imports

What is associated with negative economic growth?

• Increase in real GDP
• Decrease in unemployment
• Economic recession
• Increase in productivity

Which factor contributes to long-term economic growth?

• Reduction in tax rates
• Increase in the quantity and quality of factors of production
• Increase in government spending
• Decrease in exports

Which model illustrates actual growth in the short term?

• AD-AS model
• Circular flow model
• Demand-supply model
• Keynesian model

In an AD-AS model, what causes an increase in real GDP?

• Decrease in aggregate demand
• Increase in aggregate demand
• Decrease in SRAS
• Increase in unemployment

How is potential output illustrated in an AD-AS diagram?

• Intersection of AD and SRAS
• Full employment level of national output
• Intersection of SRAS and LRAS
• AD curve shifting leftward

What does the production possibility curve (PPC) illustrate?

• The maximum output possible when resources are used efficiently
• The relationship between price level and output
• The effect of inflation on GDP
• The change in employment levels

What shift in the PPC represents long-term growth?

• Inward shift
• Movement along the curve
• Outward shift
• No change