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Worksheets4.2.3.1 Economic growth and the economic cycle NOTES
Total questions: 10
Worksheet time: 5mins
What primarily drives short-run growth?
Improvements in human capital
Technological progress
Capital accumulation
Changes in aggregate demand
Which factor is a key determinant of long-run economic growth?
Consumer confidence
Technological innovation
Business cycles
Supply shocks
What does a positive output gap indicate?
An overheating economy
Economic underutilization
Downward pressure on prices
Unemployment
Which of the following is a benefit of economic growth?
Depletion of natural resources
Higher living standards
Income inequality
Environmental degradation
What is a negative output gap a signal of?
Technological advancement
Upward pressure on prices
Economic underutilization
High demand
Which determinant affects short-run growth due to changes in resource prices or natural disasters?
Global economic conditions
Consumer spending
Supply-side determinants
Demand-side determinants
What is the impact of long-run growth on the economy?
Exacerbation of inequality
Strain on infrastructure
Increased tax revenues
All of the above
Which economic indicator is used to identify phases of the economic cycle?
Real GDP
Supply shocks
Consumer confidence
Global demand
What can cause changes in the phases of the economic cycle?
Natural disasters
Changes in international trade policies
Technological innovations
All of the above
What is a key focus of sustainable growth policies?
Increasing consumer spending
Maximizing economic output
Reducing technological advancement
Mitigating negative impacts on the environment
