Economic Growth Quiz

What is the definition of economic growth?

• Increase in unemployment

• Annual percentage change in GDP

• Decrease in the value of goods

• Reduction in national income

How is economic growth typically measured?

• Unemployment rate

• Rate of investment

• Annual percentage change in GDP

• Inflation rate

Which formula represents GDP?

• GDP = C + I + G + NX

• GDP = M + X - G

• GDP = C + I - M

• GDP = G - NX + I

What does "C" represent in the GDP formula?

• Government spending

• Investment

• Consumption

• Net exports

What is nominal GDP?

• GDP adjusted for inflation

• GDP per head

• Monetary value of goods and services produced, unadjusted for inflation

• Total investment

What is real GDP?

• GDP without government spending

• GDP per worker

• GDP adjusted for inflation

• GDP that only includes exports

What is GDP per capita?

• The total value of exports

• The average GDP per person

• The GDP per household

• GDP divided by the number of industries

Which of the following is NOT a cause of a recession?

• Decrease in consumption

• Increase in investment

• Fall in government spending

• Decline in exports

What is the business cycle?

• Annual increase in GDP

• Fluctuations in economic activity over time

• Decrease in inflation

• Rise in the standard of living

What is a primary factor contributing to economic growth?

• High inflation

• Population growth only

• Increased investment in capital

• Decrease in productivity