Economic growth：練習題

What is the most accurate definition of economic growth?

What is the primary distinction between nominal GDP and real GDP when measuring economic growth?

A government decides to reduce income tax and increase government spending on infrastructure. How is this set of policies most likely to affect economic growth and cyclical unemployment?

Which indicator is used to measure economic growth while accounting for changes in the general price level?

A country experiences a \( 5\% \) increase in Real GDP over a year, but its population increases by \( 7\% \) over the same period. What has happened to economic wellbeing as measured by GDP per head?

Economic growth is a primary macroeconomic objective for most governments.
(a) Define Economic growth and identify the main indicator used to measure it.
(b) An economy is currently producing at a point inside its Production Possibility Curve (PPC). Explain the difference between economic growth caused by a movement from a point inside the curve toward the boundary, and growth caused by an outward shift of the entire PPC. Describe what might cause such an outward shift.