Question 1
What is meant by real values?
A.
Not adjusted for inflation. B.
Increase in productive capacity (LRAS shifts right). C.
Adjusted for inflation. D.
GDP plus net income flows from abroad.
Question 2
What is meant by gdp per capita?
A.
GDP plus net income flows from abroad. B.
GDP divided by population. C.
Total value of goods and services produced in a period. D.
Adjusts GDP for cost of living and exchange rates when comparing countries.
Question 3
What is meant by gdp?
A.
Short-run increase in real GDP/incomes. B.
Increase in real output or productive potential over time. C.
Increase in productive capacity (LRAS shifts right). D.
Total value of goods and services produced in a period.
Question 4
What is meant by actual growth?
A.
GDP plus net income flows from abroad. B.
GDP divided by population. C.
Short-run increase in real GDP/incomes. D.
Adjusted for inflation.
Question 5
Potential growth is shown by:
A.
A movement along AD B.
A left shift of SRAS only C.
Higher imports only D.
An outward shift of LRAS
Question 6
What is meant by economic growth?
A.
Not adjusted for inflation. B.
Increase in real output or productive potential over time. C.
Increase in productive capacity (LRAS shifts right). D.
Adjusted for inflation.
Question 7
Real GDP measures output:
A.
Adjusted for inflation B.
Exports only C.
Government spending only D.
At current prices only
Question 8
What is meant by nominal values?
A.
Not adjusted for inflation. B.
GDP divided by population. C.
Increase in productive capacity (LRAS shifts right). D.
Short-run increase in real GDP/incomes.
Question 9
A negative output gap means:
A.
Exports exceed imports B.
Unemployment is zero C.
Actual GDP below potential D.
Inflation is zero
Question 10
GDP per capita is used to:
A.
Compare living standards between countries B.
Calculate the multiplier C.
Measure inflation D.
Record BoP only
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