Mod 5.6 Economic Growth

Which of the following is the key statistic used to track economic growth?

• nominal GDP

• real GDP per capita

• inflation rate

• unemployment rate

• exports

The aggregate production function shows the relationship between real GDP and

• physical capital

• technology

• human capital

• inflation

• unemployment

The rule of 70 explains:

• the fact that the United States is seven times as productive as it was ten years ago

• negative growth rates of countries

• how long it takes a country to double potential output

• the average age of retirement in the United States

• how many countries in the world have a lower GDP than the United States

Improvements in education shift the aggregate production function

• downward

• leftward

• inward

• not at all

• upward

Economies experience more rapid growth when they do which of the following?

• invest in infrastructure

• limit human capital

• decrease government spending

• eliminate public health programs

• raise taxes

Which of the following can lead to increases in physical capital in an economy?

• decreased investment spending

• increased spending by domestic households

• decreased savings

• increased capital inflows

• less investment in technological innovations

In the aggregate demand–aggregate supply model, long-run economic growth is shown by:

• a rightward shift of the aggregate demand curve

• a rightward shift of the short-run supply curve

• an increase in the price level

• a rightward shift of the long-run aggregate supply curve

• a leftward shift of the aggregate demand curve