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Economic growth · Part 1 of 3
9 exam-style questions with model answers, plus 13 quick multi-choice questions — every question on this part of the standard, grouped by the 3 pages of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
Define GDP and explain how the economic growth rate is calculated from it.
Explain in detail the difference between a fall in real GDP and a fall in productive capacity, using an example of each.
After a major natural disaster, New Zealand's measured real GDP rises sharply during the rebuild.
Discuss whether this rise in real GDP means New Zealanders are better off. Compare and contrast what real GDP, productive capacity and net social welfare each show, and give a reasoned judgement.
Explain why using real GDP to measure economic growth is better than using nominal GDP.
Explain in detail two reasons why an increase in real GDP is better for the New Zealand economy than an equal increase in nominal GDP.
Over a decade, New Zealand's real GDP grows steadily, but many New Zealanders report that they do not feel better off.
Discuss how this is possible. Compare and contrast the usefulness of real GDP and net social welfare as measures of economic growth, and give a reasoned judgement about which New Zealand should pay more attention to.