Question

A. Which of the following best describe economic growth

1. An increase in real GDP per capita over time, where GDP per capita is real output divided by population
2. An increase in the value of final goods and services produced within the borders of the country in a one year period
3. A sustained increase in nominal GDP occurring over time
4. An absolute change of real GDP or real GDP per capita over time

B. In the AD-AS model, an expansionary fiscal policy may lead to a.......

1. Rightward shift of aggregate demand and demand-pull inflation
2. Leftward shift of aggregate demand and demand-pull inflation
3. Rightward shift of aggregate supply and cost-push inflation
4. Leftward shift of aggregate supply and cost-push inflation

Answer 1

Economic growth is best described by: An increase in real GDP per capita over time, where GDP per capita is real output divided by population

An expansionary fiscal policy may may lead to a rightward shift of aggregate demand and demand-pull inflation