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  • Economic Short Answer Questions

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    Ambreen Khan
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    Government and technology can affect economic growth in several ways: 1) Increased government spending leads to a rise in aggregate demand and GDP. 2) Improvements in technology cause the long-run aggregate supply curve to shift right, increasing potential output. 3) Population growth leads to more available factors of production, causing the long-run aggregate supply curve to shift right and potential output to rise.

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    Government and technology can affect economic growth in several ways: 1) Increased government spending leads to a rise in aggregate demand and GDP. 2) Improvements in technology cause the long-run aggregate supply curve to shift right, increasing potential output. 3) Population growth leads to more available factors of production, causing the long-run aggregate supply curve to shift right and potential output to rise.

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    14 views2 pages

    Economic Short Answer Questions

    Uploaded by

    Ambreen Khan
    Government and technology can affect economic growth in several ways: 1) Increased government spending leads to a rise in aggregate demand and GDP. 2) Improvements in technology cause the long-run aggregate supply curve to shift right, increasing potential output. 3) Population growth leads to more available factors of production, causing the long-run aggregate supply curve to shift right and potential output to rise.

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    Economic short answer questions. :( Help?

    1. How does government and technology affect the economic growth? 2. How does consummer expectation affect bussines? 3. Explain how population, government and foreign trade affect economic gorwth? 4. Explain how other income, output measures, in a decision to GDP are used to express the performance of the economy? If you can't answer all of them its okay. One will help a lot. Thanks. :)

    5 months ago Report Abuse

    Calm and Rational


    Best Answer - Chosen by Voters


    1. How does government and technology affect the economic growth? AD = C + I + G + (X-M) G = Government spending. As government spending increases, AD will increase. This is illustrated by a rightward shift of the AD curve. This implies that output (GDP) will increase. Therefore economy will grow. Improvement in technology will cause the LRAS to shift to the right. As LRAS shift to the right, output increases. Therefore the economy will experience REAL economic growth. Vice-versa 2. How does consummer expectation affect bussines? When consumer expectation a.k.a consumer confidence show how consumer feel about the economy. When consumer feel that the economy is doing well, consumer confidence increase. As consumer confidence increase, consumer spending increase. This implies that firms revenue will

    increase as consumer consume more of their products. 3. Explain how population, government and foreign trade affect economic gorwth? As population increases, factor of production increases. LRAS will shift to the right. Economy will experience REAL economic growth. Government as explained above. As, AD = C + I + G + (X-M) (X-M) = Net export. As net export increases, AD will increase. As AD increase, output (GDP) will increase. Net export can increase by exporting more OR importing less. This is more foreign trade affect economic growth. 4. Explain how other income, output measures, in a decision to GDP are used to express the performance of the economy? Not sure what you meant by this question. Other examples of economic indicator are GNP, GDP Per capita. Retail sales index also give you a good idea of the state of the economy.

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