B321 MA04 Economic growth Recap

B321 MA04 Economic growth Recap

University

9 Qs

quiz-placeholder

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B321 MA04 Economic growth Recap

B321 MA04 Economic growth Recap

Assessment

Quiz

Business

University

Hard

Created by

S Lee

Used 6+ times

FREE Resource

9 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

AD curve shift to right to show potential economic growth

True

False

Answer explanation

AD curve shifts to the right to show actual economic growth.

2.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

To boost economic growth the government is most likely to

a)     Increase interest rates

b)     Increase taxation rates

c)     Provide incentives to invest

d)     Provide incentives to save

Answer explanation

real GDP = C + I + G + (X-M)

3.

MULTIPLE CHOICE QUESTION

20 sec • 2 pts

Media Image

An outward shift in the PPF depicts

Potential Economic Growth

Actual Economic Growth

Economic Contraction

A recession

4.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

An outward shift in the PPC corresponds to _____ of the long-run aggregate supply curve.

a leftward shift

a rightward shift

constant value

an indeterminate shift

Answer explanation

Media Image

5.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

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

Answer explanation

Actual economic growth is when AD shifts right (demand sided). Increase income will increase consumption.

6.

MULTIPLE CHOICE QUESTION

20 sec • 2 pts

Which of the following policies is a supply-sided policy and can be used for economic growth

Increased government spending

Increased education and training for workers

Increased exports

Decreased rates of interest

Answer explanation

Increase in the quality and quantity of FOP will increase LRAS (supply side).

7.

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

Media Image

What is the economic growth rate in year 2?

5%

10%

11%

20%

Answer explanation

change in GDP = [(220-200)/200] x 100 = (20/200) x 100 = 10%

8.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

A recession is

negative real GDP over 2 successive quarters

negative real GDP for 1 quarter

a reduction general price level over two successive quarters

a reduction in investment over a whole year

9.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

Media Image

An inward shift in the PPF depicts

Actual Economic Growth

Economic Contraction

Potential Economic Growth

A recession