10 Questions
What is the primary focus of macroeconomists in the short-run?
Studying economic fluctuations
What was the approximate percentage of homes in the United States with electricity at the beginning of the 20th century?
2%
What is the primary driver of improved living standards in the 20th century?
The growing ability of the economy to produce goods and services
Why do macroeconomists study economic growth?
To understand why economic growth occurs faster in some times and places than in others
What is the term used to describe the differences between actual output and potential output?
Economic fluctuations
What is the key statistic to track economic growth?
Real GDP per capita
What is the purpose of expressing real GDP in per capita terms?
To isolate the effect of changes in the population and to have an indicator of the standard of living
Why do macroeconomists use PPP exchange rates over market established exchange rates for international comparisons?
Because market established exchange rates are more volatile
What is the formula to express the percentage variation of GDP per capita?
∆% real GDP pc = ∆% real GDP - ∆% Population
What is the main purpose of using a common currency, such as US$, for international comparisons?
To convert the GDP of each country to a unique currency
This quiz covers the concept of economic growth, focusing on short-run fluctuations and long-run dynamics of output in the context of tourism. It also explores the evolution of economic conditions over time. Test your understanding of macroeconomics and its application to the tourism industry.
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