MCQs of Economics – Long Term Economic Growth

Economic growth is important because:

The idea of convergence of GDP in Europe suggests that:

Identify below what is NOT considered to be a cause of economic growth.

The best way to achieve economic growth is to:

The long run equilibrium level of national income is the level at which:

The golden-rule saving rate is the rate of saving that:

The growth path resulting from technological progress for a given saving rate is known as the:

The percentage of the working age population that is part of the workforce is known as the:

The belief that the rate of growth depends upon technological progress facilitated by institutions incentives and government is known as ____ growth theory

Policies to encourage productivity do not include:

A combined measure of productivity that takes account of both labour and capital productivity is known as:

Identify below what does NOT affect productivity

A higher short-term rate of growth will normally require a faster rate of technological progress.

Governments can stimulate productivity by:

Supply side policies are considered effective in:

GDP per head may be an imperfect measure of economic welfare because it excludes:

Potential output can be increased by ____ or by ______

If a production input is in fixed supply growth is impossible in the long run

The neoclassical theory of growth identifier the steady state rate of growth as the ____ just sufficient to keep _____ constant while labour grows

In the neoclassical theory of growth a higher saving rate leads to:

The convergence hypothesis states that poor countries grow more slowly than average but rich countries grow more quickly than average

Economic growth may depend upon _____ and _____

The zero growth proposal argus that it is best to aim for zero growth in measured GNP to avoid environmental costs

The growth rates of economies tend to converge because ______ is easier when capital per worker is low and because of :

The business cycle describes fluctuations in output around the:

All of the following are parts of the business cycle except:

The Political business cycle arises because politicians interfere with the economy for political advantage

The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the:

The multiplier accelerator model assumes ____ depends on ______

Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output

The impossibility of negative gross investment provides a ______ to fluctuation in ______

Output can exceed demand during the recovery phase as firms restore stocks to their target levels

Real business cycles are cycles in

Real business cycle theories suggest that _____ to correct departures from the desired growth path

The business cycle is not transmitted from one country to another through:

Real business cycle theorists argue that ______ can explain short short and long term fluctuation in output:

Keynesian unemployment causes a fall in the real wage: