Take this Quiz: A-Level Economics: Supply-Side Policies and Growth | Zestly

Question 1

Which of the following are considered key determinants of long-run economic growth? Select all that apply.

Accepted Answer

Growth in the quantity and quality of factors of production

Question 2

In the context of the economic cycle, what does a negative output gap signify?

Accepted Answer

Actual GDP is lower than potential GDP, indicating underutilized resources

Question 3

How does an interventionist supply-side policy, such as increased government spending on education and training, shift the long-run aggregate supply (LRAS) curve?

Accepted Answer

It shifts the LRAS curve to the right by increasing the human capital and productivity of the labor force

Question 4

Which of the following accurately characterizes the 'boom' phase of the economic cycle?

Answer

Actual growth is above the trend rate, and the economy experiences a positive output gap

Answer

Unemployment is high, and the economy is experiencing a recession

Answer

The economy is at the trough of the cycle with low inflation

Answer

Potential growth is falling due to a lack of investment

Question 5

Which of the following are examples of market-based supply-side policies aimed at increasing labor market flexibility? Select all that apply.

Answer

Reducing the power of trade unions to negotiate wages

Answer

Increasing the national minimum wage to boost consumer spending

Answer

Reducing unemployment benefits to increase the incentive to seek work

Answer

Increasing government funding for vocational training centers