- Study guides, Class notes & Summaries

Business cycle correct answersFluctuations in economic activity, such as employment and production. Long run economic growth correct answersThe process by which rising productivity increases the average standard of living. Growth rate correct answersThe percentage increase or decrease of GDP from the previous measurement cycle. It is annualized so it can be compared to the previous year. Rule of 70 correct answersA method for determining the number of years it will take for some measure...

Accumulation of physical and human capital correct answers_________________ is central in explaining rising living standards and economic growth Investment is greater than the amount necessary to replace depreciated capital correct answersEconomic growth occurs when: Solow Model/Neoclassical Growth Model correct answersHighlights the determinants of a country's standard of living in the long run. Law of diminishing returns correct answersUltimate constraint on growth for the Solow Mo...

How do economists define and measure economic growth? correct answersEconomists define economic growth as an increase in real GDP occurring over some time period or an increase in real GDP per capita occurring over some time period. What is real GDP per capita? correct answersReal GDP per capita is the amount of real output per person in a country. How is real GDP per capita calculated? correct answersReal GDP divided by population Why is growth a widely held economic goal? correct answ...

business cycle correct answersalternating periods of economic expansion and economic recession way to increase standard of living correct answersincreasing production faster than population growth long-run economic growth correct answersthe process by which rising productivity increases the average standard of living how to measure long run economic growth? correct answersreal GDP per person [capita] how to calculate # of years takes GDP to double correct answers70/Growth rate lab...

Economic Growth correct answersRefers to an overall expansion of the economy, resulting from a real increase in the GNP after the effects of inflation have been taken into consideration Economic growth examines quantitative increase in a country's production and therefore it would be concerned with the numerical increases in the national income. Growth is usually seen as positive; however, a country can fail to expand its production and thus this would be referred to as a negative grow...

Which variable is used to measure economic growth? correct answersReal GDP Labor Productivity correct answersTotal Real GDP divided by the number of workers (output per worker). Relationship between Saving and Investment correct answersWithout saving, we cannot have investment, if there is no investment in our capital stock, there would be much less economic growth. What is key to the New Growth Theory? correct answersTechnology Why is Free Trade viewed as key to economic development...

Business cycle correct answersalternating periods of growth and decline that the economy goes through GDP correct answersGross Domestic Product- the total market value of all final goods and services produced annually in an economy Leading indicator correct answersStatistical data that predict the status of the economy three to twelve months in the future. Price stability correct answersThe condition that exists when overall price levels remain relatively constant over a period of time....

Economic growth correct answersIt can be defined as an increase in GNP per head without any changes to the structure of society Advantages of Economic growth are: correct answers1. Unemployment falls/Employment grows 2. Government revenue increases 3. Standard of living increases 4. A wider choice of goods and services are available. 5. Increase in immigration 6. An improvement in the balance of payments Unemployment falls/Employment increases: correct answersTo produce more output mo...

Ways to show correct answers-LRAS shifting out -PPF shifting out -Increase in AD -Improving labour force -Improving technology -more investment -Capital Deepening- rise is capital stock Business Cycle correct answersA phenomenon where by GDP fluctuates around its underlying trend, following a regular pattern. Output gap correct answersThe difference between actual real and potential real GDP. Actual growth correct answersPercentage increase in countries real gdp and is measured a...

In light of this single change to the conditions faced in this nation, this nation's economic growth rate for the current year will be correct answerszero Per capita real GDP of country A = correct answersReal GDP of country A (in billions) / Population of country A (in billions) All of the following are benefits of economic growth except correct answersurban congestion If the average annual rate of economic growth is 4 percent, approximately how long will it take for the nation's...