What is the difference between real and nominal GDP?

Real GDP has been adjusted for inflation

Which of the below are associated with an expansion in the business cycle?

Increase in production, decrease in unemployment, increase in inflation

Economic growth refers to:

Total goods and services produced

An increase in aggregate demand will have which effect?

Increase in inflation and increase in GDP

Aggregate supply will increase when

Cost of production falls and supply conditions improve

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VCE Economics U2O1

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vce economics

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Questions 14

Answers

1
Which of the below do not improve income inequality?
Progressive income tax system
Increasing tax on cigarettes
Means testing of government subsidies
Higher taxes on investment properties
2
Household Consumption (C) accounts for approximately what percentage of Aggregate Demand?
30%
60%
50%
40%
3
What relates to the inability to understand the consequences of their actions because of their social status?
Affluenza
Affluency
Affectuantarianism
Rich person syndrome
4
What is the difference between real and nominal GDP?
Nominal GDP has been adjusted for inflation
Nominal GDP has more meaning when using it as a tool
Real GDP has been adjusted for inflation
Nominal GDP is based on personal beliefs
5
Which of the below are associated with an expansion in the business cycle?
Increase in production, decrease in unemployment, increase in inflation
Increase in production, increase in unemployment, decrease in inflation
Increase in production, increase in unemployment, increase in inflation
Decrease in production, increase in unemployment, increase in inflation
6
Which of the following is most likely to increase economic growth?
Lower export demand (M)
Higher interest rates
Lower exchange rate
Higher import demand (M)
7
Which of the following is NOT a leakage from the circular flow of income?
Unemployment
Expenditure
Income
Production
8
Which of the below if a factor that impacts aggregate supply?
Consumer confidence
Disposable income
Business confidence
Productivity growth
9
BONUS QUESTION: How much hair does the average person grow in a year? (On their head!)
1.2 m
8 cm
15 cm
40 cm
10
Economic growth refers to:
Total expenditure in a country
Total goods and services produced
Total goods and services purchased
Price of all goods and services
11
Which of the following is most likely to increase economic growth?
Lower interest rates
Lower business confidence
Lower growth overseas
Lower productivity
12
An increase in aggregate demand will have which effect?
Increase in inflation and decrease in GDP
Decrease in inflation and increase in GDP
Increase in inflation and increase in GDP
Decrease in inflation and decrease in GDP
13
Which type of economic indicator presents data that is happening in the present moment?
Leading
Coincident
Lagging
Preluding
14
Aggregate supply will increase when
Cost of production falls and supply conditions woresen
Cost of production increases and supply conditions improve
Cost of production increases and supply conditions woresen
Cost of production falls and supply conditions improve

VCE Economics U2O1 Flashcards | StudBud