12 Questions
What is the key statistic to track economic growth?
Real GDP per capita
Why is real GDP per capita a better indicator of a country's standard of living?
Because it separates changes in the quantity of goods and services from the effect of a rising price level
Why can't we conclude that a Russian citizen is richer than a Luxembourg citizen based on real GDP?
Because Russia's population is larger than Luxembourg's
What is the formula to express the percentage variation of GDP per capita?
∆% real GDP pc = ∆% real GDP - ∆%Population
Why do macroeconomists use purchasing power parity exchange rates instead of market established exchange rates?
Because market established exchange rates are more volatile
What is the purpose of using a common indicator such as real GDP per capita to compare countries' GDP?
To enable international comparisons of countries' GDP
What is the primary focus of macroeconomists in the short-run?
Studying economic fluctuations
What is the notable change in the twentieth century that reflects economic growth?
Dramatic increase in the quantity of goods and services
In the early 20th century, what percentage of homes in the United States had central heating?
8%
Why do macroeconomists study economic growth?
To understand why economic growth occurs faster in some times and places
What is the term for the growing ability of the economy to produce goods and services?
Economic growth
What is the focus of macroeconomists in the long-run?
Studying the dynamics of output
Test your understanding of economic growth, a crucial concept in macroeconomics. This quiz covers the short-run and long-run perspectives of macroeconomists, and how they study economic fluctuations and output dynamics. Focus on tourism industry analysis.
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