Economics 1st Mid term Assignment

Economic growth is defined as?

• The decrease in productive capacity of an economy

• The increase of the prices of good within an economy

• The inverse relationship between money and productive capacity

• The increase in productive capacity of an economy

_________ is the effect of inflation remove from the current GDP figures.

• Nominal wage

• Real wages

• CPI

• Real GDP

What is a method to increase economic growth?

• Increase labour productivity

• Reduce government expenditure

• Increase regulations

• increase unemployment

When is an economy in a recession?

• When there are 2 consecutive period of positive growth

• When an economy's revenue exceeds its expenditure

• When there are 2 consecutive periods of negative growth

• When there are 2 consecutive periods of negative capital investment

what is a budget deficit?

• When the governments revenue exceeds it expenditure

• When the government forgets to collect taxes

• When the governments expenditure exceeds its revenue

• When the governments imports exceeds its exports

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.

An increase in the general level of prices for goods and services 

• Inflation

• Hyperinflation

• Reflation

• disinflation

• Demand-Pull Inflation

Rapidly rising prices that are out of control 

• Inflation

• Hyperinflation

• Reflation

• disinflation

• Demand-Pull Inflation

Rising prices with the rate of increase slowing down

• Inflation

• Hyperinflation

• Reflation

• disinflation

• Demand-Pull Inflation

Rising prices as a result of consumers wanting to buy more goods and services than producers supply

• Deflation

• Cost Push Inflation

• Reflation

• Disinflation

• Demand-Pull Inflation