Economic Growth Test 02/04/25

Question 1

What is the 2-sector model?

Answer 1

Households ⇄ Firms (no government/foreign trade)

Question 2

What is added in the 4-sector model?

Answer 2

Government + Foreign Sector (exports/imports)

Question 3

Income method formula?

Answer 3

Wages + Rent + Interest + Profit

Question 4

Expenditure method formula?

Answer 4

C (Consumption) + I (Investment) + G (Government Spending) + (X-M) (Net Exports)

Question 5

Output method rule?

Answer 5

Adding up only all final goods/services

Question 6

What are injections?

Answer 6

I , G , X

Question 7

What are leakages?

Answer 7

S , T , M

Question 8

GDP triple equality?

Answer 8

Output ≡ Income ≡ Expenditure

Question 9

Nominal GDP?

Answer 9

GDP at current prices including inflation

Question 10

Real GDP?

Answer 10

GDP at constant prices (inflation removed)