UNIT 05 / LONG-RUN CONSEQUENCES OF STABILIZATION POLICIES

Public Policy and Economic Growth5.7 test

100 questions with explanations after each answer.

Practice mode

QUESTION 01 / 100Easy

Which of the following best explains how a public policy can promote long-run economic growth?

Select one answerAIt can permanently raise real GDP per capita by increasing the price level aloneBIt can raise productivity or labor-force participation, increasing real GDP per capita over timeCIt can increase nominal GDP while leaving productive capacity and real output unchangedDIt can guarantee growth whenever government spending rises, regardless of what the spending financesEIt can create long-run growth only by reducing the number of people participating in the labor force

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1 of 100

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Question 1