Long Term Economic Growth Mcqs

MCQ: Real business cycle theories suggest that _____ to correct departures from the desired growth path?

1. There is a role for fiscal policy
2. There is a role for monetary policy
3. There is a role for supply-side policy
4. There is a role for stabilizing output ever the business cycle

MCQ: The impossibility of negative gross investment provides a ______ to fluctuation in ______?

1. ceiling, stock building
2. ceiling, capital prices
3. floor, output
4. floor, the capital-output ratio

MCQ: The multiplier accelerator model assumes ____ depends on ______?

1. consumption expected future profits
2. investment, interest rates
3. investment expected future profits
4. stock building interest rates

MCQ: All of the following are parts of the business cycle except ?

1. boom
2. slump
3. recovery
4. acceleration

MCQ: The business cycle describes fluctuations in output around the?

1. trend path of output
2. boom
3. recession
4. short-run fluctuations in output

MCQ: The neoclassical theory of growth identifier the steady state rate of growth as the ____ just sufficient to keep _____ constant while labor grows?

1. saving, investment
2. capital per person, productivity
3. labor growth, output
4. investment capital per person

MCQ: GDP per head may be an imperfect measure of economic welfare because it excludes ?

1. the value of leisure
2. Externalities
3. Untraded goods
4. Change in the distribution of income
5. All of the above

MCQ: Governments can stimulate productivity by ?

1. Imposing higher taxes on capital
2. encouraging more labour intensive work to reduce unemployment
3. reducing spending in education
4. encouraging private investment

MCQ: A combined measure of productivity that takes account of both labor and capital productivity is known as ?

1. total exploitation
2. labour/capital productivity
3. total factor productivity
4. total productivity

MCQ: The belief that the rate of growth depends upon technological progress facilitated by institutions incentives and government is known as ________ growth theory?

1. endogenous
2. exogenous
3. beta
4. convergence