Economic growth：練習問題

An economy is said to be in a recession when it experiences which of the following?

The Purchasing Power Parity (PPP) exchange rate is used when comparing GDP between countries primarily to account for differences in:

Which of the following scenarios would most likely lead to export-led growth for an economy?

Potential economic growth is best defined as an increase in which of the following?

An economy is currently experiencing a negative output gap. Which of the following is most likely to be a characteristic of this economic state?

Identify two limitations of using Gross Domestic Product (GDP) as the sole measure to compare living standards between different countries.

Explain how net migration into an economy can lead to potential economic growth.

Define the term output gap and distinguish between a positive and negative output gap.

An economy is currently experiencing rapid actual growth, but economists have identified the emergence of a significant positive output gap.

(a) Distinguish between actual economic growth and potential economic growth. (2)
(b) Explain one possible cost of a sustained positive output gap. (2)
(c) Evaluate why measuring the size of an output gap is often difficult for government policymakers. (4)