Macroeconomic Issues EG Quiz

What is one of the main macroeconomic aims of governments?

• Reducing government spending

• Increasing taxes on all citizens

• Sustainable & Inclusive economic growth

• Maximizing profits for corporations

What does actual economic growth refer to?

• Increase in productive capacity

• Percentage annual increase in national output

• Increase in unemployment rates

• Decrease in GDP

Which model is used to illustrate sustained economic growth?

• Monetary Policy Model

• Circular Flow Model

• AD-AS Model

• Supply and Demand Model

What is a consequence of negative economic growth?

• Higher standards of living

• Increase in employment opportunities

• Increase in GDP

• Lower standards of living

Which of the following is a determinant of actual economic growth?

• Increase in Aggregate Demand

• Decrease in consumer confidence

• Decrease in government spending

• Increase in interest rates

What does potential economic growth refer to?

• Actual increase in GDP

• Increase in inflation

• Increase in productive capacity

• Decrease in unemployment

What is one of the effects of sustained economic growth?

• Increased inflation

• Reduction in poverty

• Lower GDP per capita

• Higher unemployment rates

What can cause unsustainable economic growth?

• High levels of employment

• Increased investment in education

• Lack of diversification in the economy

• Strong environmental protection

What is sustainable economic growth focused on?

• Reducing government regulations

• Increasing military spending

• Environmental aspects of growth

• Maximizing short-term profits

What is a potential consequence of rapid economic growth?

• Increased job security

• Environmental degradation

• Higher levels of savings

• Lower inflation rates