Unit 2 Extra

Question 1

National income accounts define investments to include

Answer 1

any increase in business inventories

Question 2

real GDP

Answer 2

data that gave veen adjusted for changes in price level

Question 3

supply factors of growth

Answer 3

improvements in technology, increase in supply, increase of quantity and quality if natural and human resources

Question 4

demand factors of growth

Answer 4

purchases of expanding output

Question 5

increase of human capital

Answer 5

shift curve to the right

Question 6

Increase of labor productivity

Answer 6

realization of economics of scale, technological advances, and more education and training

Question 7

largest factor to labor productivity increase

Answer 7

technology advances

Question 8

pollution

Answer 8

occurs not because of growth but because common resources are treated as free goods

Question 9

Critics of growth

Answer 9

argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth

Question 10

NRU

Answer 10

the rate of unemployment occurring when the economy is at its potiential output

Question 11

Actual GDP < potential GDP

Answer 11

the actual unemployment rate is higher than NRU

Question 12

CPI

Answer 12

cost PUSH Inflation