Why is economic growth considered important?
Correct answer C. People want higher incomes and more consumer goods
Topic / 30 questions
Long Term Economic Growth MCQs
Long Term Economic Growth MCQs cover what drives a country's output to rise over many years and how this differs from short-run business cycle fluctuations. Topics include productivity, supply side policies, real business cycle theory and convergence. They help CSS, PMS and UGC NET economics candidates, and every question has an instant answer.
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
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- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
Which of these is NOT regarded as a cause of economic growth?
Correct answer B. An increase in the money supply
What does the golden-rule saving rate achieve?
Correct answer D. It maximises the level of long-run consumption
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What is the name for the percentage of the working-age population that is in the workforce?
Correct answer B. Participation rate
Which of these is NOT a policy for encouraging productivity?
Correct answer A. Building more retail outlets
Which of these does NOT influence productivity?
Correct answer C. The phase of the lunar cycle
Supply-side policies are regarded as effective in doing which of the following?
Correct answer D. Encouraging technological progress
Potential output can be raised in which two ways?
Correct answer D. Increasing the use of all inputs, technical advances
In neoclassical growth theory, what does a higher saving rate lead to in the long run?
Correct answer B. No change in the growth rate
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Economic growth may depend on which two factors?
Correct answer C. Population growth and technical progress
Growth rates tend to converge because ____ is easier when capital per worker is low, and because of ____. Which pair completes the sentence?
Correct answer C. Capital-deepening, catch-up in technology
Which theory explains business cycles through the dynamic interaction between consumption and investment demand?
Correct answer D. Multiplier-accelerator model
Real business cycle theory says that ____ not important in explaining short-term fluctuations in actual output. Which phrase completes the sentence?
Correct answer D. Aggregate demand is
Real business cycles are fluctuations in which measure?
Correct answer B. Potential output
Through which channel is the business cycle NOT passed from one country to another?
Correct answer A. The duration of compulsory education
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According to real business cycle theorists, what can explain both short- and long-term fluctuations in output?
Correct answer A. Intertemporal decisions of households, firms and government
What does the idea of GDP convergence in Europe suggest?
Correct answer D. Poorer, less developed countries will catch up with richer ones
According to this view, what is the best way to achieve economic growth?
Correct answer A. Save more
At what level of national income is the long-run equilibrium reached?
Correct answer B. Where all investment is used to maintain the existing capital stock at its current level
What is the name of the growth path that results from technological progress at a given saving rate?
Correct answer C. Steady state growth path
About Long Term Economic Growth MCQs
This macroeconomics topic separates trend growth from temporary ups and downs. Questions ask where supply side policies are most effective, what real business cycle theorists believe causes fluctuations, and which factors are not genuine causes of growth. You will also meet the multiplier-accelerator explanation of cycles, the phases of the business cycle, and the convergence idea that poorer economies can grow faster because capital is scarce and technology can be copied. Being able to link each theory to its main claim will help you eliminate weak options quickly.
Exams that include Long Term Economic Growth MCQs
Pakistan
- CSS
- PMS
- Lecturer tests
- Banking job tests
India
- UGC NET
- UPSC CSE
- State PSC exams
Bangladesh
- BCS
- Bangladesh Bank recruitment
Frequently asked questions
What is the convergence hypothesis in economic growth?
The convergence hypothesis says poorer countries tend to grow faster than richer ones, so incomes per person gradually move closer together. Extra capital adds more output where capital per worker is low, and poorer economies can adopt technology already developed elsewhere rather than inventing it.
What do real business cycle theorists believe?
Real business cycle theorists argue that fluctuations in output are mainly caused by real shocks, especially changes in technology and productivity, rather than by changes in money or demand. In their view, cycles are largely efficient responses to these shocks.
How many Long Term Economic Growth MCQs are on MCQs360?
MCQs360 has 30 Long Term Economic Growth MCQs, each with an instant answer and free to practise without signing up. Revise the main growth and cycle theories first, then use these questions to test how well you can apply them.
Last reviewed October 2026