Economic Growth

AD 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

Economic growth always improve one's living standard.

• True

• False

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

Economic growth measures the

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

In an economy, economic growth always occurs when:

• there is more spending on goods and services between one year and the next.

• there is more production of goods and services between one year and the next.

• there are more resources available between one year and the next.

• business activity is steady between one year and the next.

The value of spending on Australian exports (X) is likely to rise if:

• there was a recession overseas

• they became cheaper or more competitive for overseas buyers

• the exchange rate for the A$ rose or became dearer against overseas currencies

• there was a drought or floods in Australia that destroyed our crops.

What does Gross Domestic Product

mean?

• The total value of all goods and services a country imports.

• The total value of all goods and services a country exports.

• The total value of all goods and services produced within a country in one year.

• The net loss in profits within a country due to imports.

Which of the following is not a leakage from the circular flow of income?

• Savings

• Investment

• Taxes

• Imports

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

• Business Cycle

• Circular Flow

• Equilibrium

• GDP