YEAR 10 ECON GROWTH TA WEEK 2

Which of the following best defines actual economic growth?

• A. An increase in the money supply

• B. A shift outward in the production possibility curve

• C. A rise in real GDP over time

• D. An increase in the long-run aggregate supply

Which policy would most likely cause potential growth?

• A. A cut in VAT

• B. Increase in infrastructure spending

• C. Devaluation of currency

• D. Subsidies to consumers

Which of these outcomes is most likely during unsustainable growth?

• A. Fall in inflation

• B. Reduction in carbon emissions

• C. Rise in income inequality

• D. Rise in real interest rates

A long-term increase in output that does not harm future generations is best defined as:

• A. Balanced growth

• B. Actual growth

• C. Potential growth

• D. Sustainable growth

What is most likely to shift the LRAS curve to the right?

• A. Increase in imports

• B. Higher income tax

• C. Investment in education

• D. Subsidies on consumption

In the Keynesian LRAS diagram, potential growth is shown by:

• A. A shift along the curve

• B. A shift to the right of LRAS

• C. Movement from below full employment to full employment

• D. A decrease in aggregate demand

Which of the following would not increase potential growth?

• A. Technological innovation

• B. Larger working-age population

• C. Increase in aggregate demand

• D. Higher productivity

What might be a cost of high economic growth in a developing country?

• A. Lower income inequality

• B. Environmental degradation

• C. Increased unemployment

• D. Falling consumption

What might be a cost of high economic growth in a developing country?

• A. Lower income inequality

• B. Environmental degradation

• C. Increased unemployment

• D. Falling consumption

Which best describes a recessionary gap on a PPC diagram?

• A. The economy is producing at full capacity

• B. Actual output is outside the curve

• C. Output is below potential, inside the curve

• D. The curve has shifted inward due to growth