Cards (138)

    • Economic growth refers to the percentage increase in the real GDP of an economy over a specified period, typically a year
    • The economic growth rate is calculated by dividing the change in real GDP by the real GDP of the previous year and multiplying by 100
    • Match the type of GDP growth with its definition:
      Nominal GDP Growth ↔️ Increase in nominal GDP at current prices
      Real GDP Growth ↔️ Increase in real GDP adjusted for inflation
    • Real GDP growth reflects changes in both prices and quantity
      False
    • The key difference between nominal GDP and real GDP is that nominal GDP is not adjusted for inflation
    • What is the formula for calculating the economic growth rate?
      Economic Growth Rate=\text{Economic Growth Rate} =Real GDPcurrent yearReal GDPprevious yearReal GDPprevious year×100 \frac{\text{Real GDP}_{\text{current year}} - \text{Real GDP}_{\text{previous year}}}{\text{Real GDP}_{\text{previous year}}} \times 100
    • Match the supply-side or demand-side factor with its explanation:
      Increase in Labor Force ↔️ More workers available to produce goods
      Technological Progress ↔️ Improvements in technology increase productivity
      Increased Government Spending ↔️ Government investment boosts aggregate demand
      Higher Exports ↔️ More goods sold abroad increase foreign demand
    • Productivity is the ratio of total output to total input
    • Demand-side factors influence economic growth by increasing the productive capacity of the economy
      False
    • Productivity is a crucial supply-side factor
    • Supply-side factors increase the productive capacity of the economy.
    • An increase in the labor force is a supply-side factor
    • What is productivity calculated as?
      Output / Input
    • Economic growth is measured by the percentage increase in real GDP.
    • What is the formula for the economic growth rate?
      \frac{\text{Real GDP}_{\text{current year}} - \text{Real GDP}_{\text{previous year}}}{\text{Real GDP}_{\text{previous year}}} \times 100</latex>
    • Real GDP growth is adjusted for inflation
    • Match the type of GDP with its definition:
      Nominal GDP ↔️ GDP at current prices
      Real GDP ↔️ GDP adjusted for inflation
    • Nominal GDP is adjusted for inflation.
      False
    • What is the key difference between nominal GDP and real GDP?
      Inflation adjustment
    • The economic growth rate is calculated using real GDP.
    • Supply-side factors drive consumption and investment.
      False
    • Give an example of a supply-side factor influencing economic growth.
      Technological progress
    • Order the steps to calculate the economic growth rate:
      1️⃣ Determine real GDP for current year
      2️⃣ Determine real GDP for previous year
      3️⃣ Subtract previous year's real GDP from current year's real GDP
      4️⃣ Divide the result by previous year's real GDP
      5️⃣ Multiply by 100
    • Match the supply-side factor with its explanation:
      Technological Progress ↔️ Increases productivity
      Increase in Labor Force ↔️ More workers available
    • Economic growth is influenced by supply-side and demand-side factors
    • Supply-side factors increase the economy's productive capacity
    • What do demand-side factors drive in an economy?
      Consumption and investment
    • Match the supply-side factor with its explanation:
      Increase in Labor Force ↔️ More workers available
      Technological Progress ↔️ Increases productivity
      Increase in Capital Stock ↔️ More machinery and equipment
    • An increase in government spending boosts aggregate demand
    • Supply-side factors drive consumption and investment
      False
    • Order the supply-side factors affecting economic growth:
      1️⃣ Increase in Labor Force
      2️⃣ Technological Progress
      3️⃣ Increase in Capital Stock
    • What is the primary effect of increased consumer spending on economic growth?
      Drives demand
    • Higher exports increase foreign demand
    • Productivity is calculated as Total Output divided by Total Input
    • What is the productivity of a factory that produces 1000 units with 10 workers?
      100 units per worker
    • Match the type of economic growth with its characteristic:
      Actual Economic Growth ↔️ Percentage increase in real GDP
      Potential Economic Growth ↔️ Maximum sustainable output
    • Potential economic growth represents the maximum sustainable output without inflationary pressures
    • Actual economic growth reflects the economy's current expansion
    • What is the definition of potential economic growth?
      Growth rate of potential output
    • Actual economic growth is the percentage increase in an economy's real GDP