Long Term Economic Growth(Economics ) Questions and Answers

Question 1. 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
Explanation:-
Answer: Option D. -> There is a role for stabilizing output ever the business cycle
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 2. 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
Explanation:-
Answer: Option C. -> investment expected future profits
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 3. All of the following are parts of the business cycle except ?
  1.    boom
  2.    slump
  3.    recovery
  4.    acceleration
Explanation:-
Answer: Option D. -> acceleration
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 4. 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
Explanation:-
Answer: Option C. -> floor, output
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 5. 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
Explanation:-
Answer: Option D. -> investment capital per person
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 6. The business cycle describes fluctuations in output around the?
  1.    trend path of output
  2.    boom
  3.    recession
  4.    short-run fluctuations in output
Explanation:-
Answer: Option A. -> trend path of output
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 7. 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
Explanation:-
Answer: Option A. -> endogenous
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 8. 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
Explanation:-
Answer: Option C. -> total factor productivity
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 9. 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
Explanation:-
Answer: Option D. -> encouraging private investment
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 10. 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
Explanation:-
Answer: Option E. -> All of the above
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
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