Question 1

Growth in real GDP per-capita in Canada is roughly consistent with which of the following predictions of the Solow model?

Accepted Answer

A)  a constant growth rate in the growth rate of the labour force 
B)  a steady increase in the savings rate 
C)  a convergence with lower income countries 
D)  convergence to a steady state level of real GDP per-capita 
E)  exogenous TFP growth at a constant rate 
A)  a constant growth rate in the growth rate of the labour force 
B)  a steady increase in the savings rate 
C)  a convergence with lower income countries 
D)  convergence to a steady state level of real GDP per-capita 
E)  exogenous TFP growth at a constant rate

Question 2

According to the Solow growth model, in the long-run steady state, all real aggregate quantities grow

Accepted Answer

A)  according to the savings rate in the economy, s. 
B)  at the rate n, the growth rate of the labour force. 
C)  at the same rate as per worker capital. 
D)  depending on how consumption affects population growth. 
E)  at the same rate as consumption per worker. 
A)  according to the savings rate in the economy, s. 
B)  at the rate n, the growth rate of the labour force. 
C)  at the same rate as per worker capital. 
D)  depending on how consumption affects population growth. 
E)  at the same rate as consumption per worker.

Question 3

In more modern times as opposed to the times of Malthus, higher standards of living appear to

Accepted Answer

A)  decrease death rates and increase birth rates. 
B)  decrease death rates and also decrease birth rates. 
C)  decrease death rates and have no effect on birth rates. 
D)  have had effects on neither death rates nor birth rates. 
E)  increase death rates and have no effect on birth rates. 
A)  decrease death rates and increase birth rates. 
B)  decrease death rates and also decrease birth rates. 
C)  decrease death rates and have no effect on birth rates. 
D)  have had effects on neither death rates nor birth rates. 
E)  increase death rates and have no effect on birth rates.

Question 4

Percentage deviations from trend in the Solow residual are

Accepted Answer

A)  unrelated to the business cycle. 
B)  procyclical and smaller than percentage deviations from trend in GDP. 
C)  procyclical and have about equal magnitude as percentage deviations from trend in GDP. 
D)  procyclical and larger than percentage deviations from trend in GDP. 
E)  related to changes in the labour force. 
A)  unrelated to the business cycle. 
B)  procyclical and smaller than percentage deviations from trend in GDP. 
C)  procyclical and have about equal magnitude as percentage deviations from trend in GDP. 
D)  procyclical and larger than percentage deviations from trend in GDP. 
E)  related to changes in the labour force.

Question 5

Growth in the Solow residual was slowest in the

Accepted Answer

A)  1950s. 
B)  1960s. 
C)  1970s. 
D)  1980s. 
E)  1990s. 
A)  1950s. 
B)  1960s. 
C)  1970s. 
D)  1980s. 
E)  1990s.

Question 6

In the Malthusian model, state-mandated population control policies are likely to

Accepted Answer

A)  decrease the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
B)  decrease the equilibrium size of the population and have no effect on the equilibrium level of consumption per worker. 
C)  have no effect on the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
D)  have no effect on the either equilibrium size of the population and the equilibrium level of consumption per worker. 
E)  have no effect on the equilibrium size of the population or the equilibrium level of consumption per worker. 
A)  decrease the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
B)  decrease the equilibrium size of the population and have no effect on the equilibrium level of consumption per worker. 
C)  have no effect on the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
D)  have no effect on the either equilibrium size of the population and the equilibrium level of consumption per worker. 
E)  have no effect on the equilibrium size of the population or the equilibrium level of consumption per worker.

Question 7

The Solow model emphasizes the role of which of the following factors of production?

Accepted Answer

A)  land 
B)  labour 
C)  capital 
D)  natural resources 
E)  education 
A)  land 
B)  labour 
C)  capital 
D)  natural resources 
E)  education

Question 8

In the Solow growth model, the law of motion of capital takes into account

Accepted Answer

A)  the depreciation of old capital. 
B)  the residential nature of houses. 
C)  the mobility of capital. 
D)  the costs of shipping and installing capital. 
E)  the impact of consumption on population growth. 
A)  the depreciation of old capital. 
B)  the residential nature of houses. 
C)  the mobility of capital. 
D)  the costs of shipping and installing capital. 
E)  the impact of consumption on population growth.

Question 9

In the Malthusian model of the economy,

Accepted Answer

A)  there is no investment or government spending. 
B)  capital replaces land in the production function. 
C)  the model is static with only one period. 
D)  population growth depends on income per worker. 
E)  population growth is negatively correlated with consumption. 
A)  there is no investment or government spending. 
B)  capital replaces land in the production function. 
C)  the model is static with only one period. 
D)  population growth depends on income per worker. 
E)  population growth is negatively correlated with consumption.

Question 10

On average, from 1870-2014, real GDP in Canada grew around

Accepted Answer

A)  2.0%. 
B)  0.6%. 
C)  8.7%. 
D)  4.1%. 
E)  -1.2%. 
A)  2.0%. 
B)  0.6%. 
C)  8.7%. 
D)  4.1%. 
E)  -1.2%.

Question 11

In Canada during the 1870-2014 period, the average annual growth in per capita income

Accepted Answer

A)  fluctuated substantially. 
B)  remained steady at about 2%. 
C)  remained constant until World War II. 
D)  rose with total factor productivity. 
E)  rose with the population growth. 
A)  fluctuated substantially. 
B)  remained steady at about 2%. 
C)  remained constant until World War II. 
D)  rose with total factor productivity. 
E)  rose with the population growth.

Question 12

Growth in employment in Canada after 1961 was highest

Accepted Answer

A)  during the 1960s. 
B)  during the 1970s. 
C)  during the 1980s. 
D)  from 2009-2014. 
E)  from 2001-2009. 
A)  during the 1960s. 
B)  during the 1970s. 
C)  during the 1980s. 
D)  from 2009-2014. 
E)  from 2001-2009.

Question 13

Recent evidence suggests that output per worker is

Accepted Answer

A)  positively related to both the rate of investment and to the rate of population growth. 
B)  positively related to the rate of investment and negatively related to the rate of population growth. 
C)  negatively related to the rate of investment and positively related to the rate of population growth. 
D)  negatively related to both the rate of investment and to the rate of population growth. 
E)  negatively related to the rate of investment and not related at all to the rate of population growth. 
A)  positively related to both the rate of investment and to the rate of population growth. 
B)  positively related to the rate of investment and negatively related to the rate of population growth. 
C)  negatively related to the rate of investment and positively related to the rate of population growth. 
D)  negatively related to both the rate of investment and to the rate of population growth. 
E)  negatively related to the rate of investment and not related at all to the rate of population growth.

Question 14

The per worker production function describes the relationship between

Accepted Answer

A)  consumption per worker and income per worker. 
B)  capital per worker and total factor productivity. 
C)  output per worker and land per worker. 
D)  labour supply and land per worker. 
E)  government spending and total factor productivity. 
A)  consumption per worker and income per worker. 
B)  capital per worker and total factor productivity. 
C)  output per worker and land per worker. 
D)  labour supply and land per worker. 
E)  government spending and total factor productivity.

Question 15

In the steady state of Solow's exogenous growth model, an increase in the growth rate of labour force

Accepted Answer

A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
E)  decreases output per worker and the marginal product of labour. 
A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
E)  decreases output per worker and the marginal product of labour.

Question 16

The Malthusian model emphasizes a fixed supply of which of the following factors of production?

Accepted Answer

A)  labour 
B)  land 
C)  energy 
D)  natural resources 
E)  capital 
A)  labour 
B)  land 
C)  energy 
D)  natural resources 
E)  capital

Question 17

In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to

Accepted Answer

A)  the declining marginal product of labour. 
B)  the declining marginal product of capital. 
C)  limits in the ability of government policy makers. 
D)  too little savings. 
E)  not enough consumption per worker. 
A)  the declining marginal product of labour. 
B)  the declining marginal product of capital. 
C)  limits in the ability of government policy makers. 
D)  too little savings. 
E)  not enough consumption per worker.

Question 18

In the Malthusian model, when z increases, initially consumption

Accepted Answer

A)  decreases and remains below the original steady state level forever. 
B)  decreases and then increases to its steady state level. 
C)  increases and then falls to its steady state level. 
D)  is unaffected by the change in z. 
E)  increases and remains above the original steady state level forever. 
A)  decreases and remains below the original steady state level forever. 
B)  decreases and then increases to its steady state level. 
C)  increases and then falls to its steady state level. 
D)  is unaffected by the change in z. 
E)  increases and remains above the original steady state level forever.

Question 19

The Solow residual attempts to measure the amount of output not explained by

Accepted Answer

A)  technological progress. 
B)  the direct contribution of labour and capital. 
C)  economic projections. 
D)  the amount of a nation's human capital. 
E)  business cycles. 
A)  technological progress. 
B)  the direct contribution of labour and capital. 
C)  economic projections. 
D)  the amount of a nation's human capital. 
E)  business cycles.

Question 20

The Solow growth model accounts for

Accepted Answer

A)  the level of research and development spending in an economy. 
B)  why richer countries have higher savings rates. 
C)  the patterns of international trade among countries. 
D)  why people consume too much. 
E)  business cycles. 
A)  the level of research and development spending in an economy. 
B)  why richer countries have higher savings rates. 
C)  the patterns of international trade among countries. 
D)  why people consume too much. 
E)  business cycles.

Growth in real GDP per-capita in Canada is roughly consistent with which of the following predictions of the Solow model?

According to the Solow growth model, in the long-run steady state, all real aggregate quantities grow

In more modern times as opposed to the times of Malthus, higher standards of living appear to

Percentage deviations from trend in the Solow residual are

Growth in the Solow residual was slowest in the

In the Malthusian model, state-mandated population control policies are likely to

The Solow model emphasizes the role of which of the following factors of production?

In the Solow growth model, the law of motion of capital takes into account

In the Malthusian model of the economy,

On average, from 1870-2014, real GDP in Canada grew around

In Canada during the 1870-2014 period, the average annual growth in per capita income

Growth in employment in Canada after 1961 was highest

Recent evidence suggests that output per worker is

The per worker production function describes the relationship between

In the steady state of Solow's exogenous growth model, an increase in the growth rate of labour force

The Malthusian model emphasizes a fixed supply of which of the following factors of production?

In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to

In the Malthusian model, when z increases, initially consumption

The Solow residual attempts to measure the amount of output not explained by

The Solow growth model accounts for

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 7: Economic Growth: Malthus and Solow

Growth in real GDP per-capita in Canada is roughly consistent with which of the following predictions of the Solow model?

According to the Solow growth model, in the long-run steady state, all real aggregate quantities grow

In more modern times as opposed to the times of Malthus, higher standards of living appear to

Percentage deviations from trend in the Solow residual are

Growth in the Solow residual was slowest in the

In the Malthusian model, state-mandated population control policies are likely to

The Solow model emphasizes the role of which of the following factors of production?

In the Solow growth model, the law of motion of capital takes into account

In the Malthusian model of the economy,

On average, from 1870-2014, real GDP in Canada grew around

In Canada during the 1870-2014 period, the average annual growth in per capita income

Growth in employment in Canada after 1961 was highest

Recent evidence suggests that output per worker is

The per worker production function describes the relationship between

In the steady state of Solow's exogenous growth model, an increase in the growth rate of labour force

The Malthusian model emphasizes a fixed supply of which of the following factors of production?

In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to

In the Malthusian model, when z increases, initially consumption

The Solow residual attempts to measure the amount of output not explained by

The Solow growth model accounts for

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters