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