Question 1

In a neoclassical growth model, a nation with a declining population growth rate will experience

Accepted Answer

A) a decrease in living standards 
B) an increase in living standards 
C) a lower savings rate 
D) an increase in long-term growth 
E) a decrease in the steady-state capital-labor ratio 
A) a decrease in living standards 
B) an increase in living standards 
C) a lower savings rate 
D) an increase in long-term growth 
E) a decrease in the steady-state capital-labor ratio

Question 2

Which of the following is NOT a source of increased factor productivity?

Accepted Answer

A) advances in knowledge 
B) growth in the size of the labor force 
C) more efficient resource allocation 
D) improved methods of production 
E) technological progress 
A) advances in knowledge 
B) growth in the size of the labor force 
C) more efficient resource allocation 
D) improved methods of production 
E) technological progress

Question 3

From 1973 to 1992, by how much more did GDP grow in Japan than in the United States?

Accepted Answer

A) 10% 
B) 22% 
C) 36% 
D) 54% 
E) 66% 
A) 10% 
B) 22% 
C) 36% 
D) 54% 
E) 66%

Question 4

Assume labor's share of income is 80% and capital's share of income is 20%.If we assume constant returns to scale, there are no technological advances, and both labor and capital grow at an annual rate of 3%, then the growth rate of output will be

Accepted Answer

A) 0)6% 
B) between 0.6% and 2.4% 
C) between 2.4% and 3% 
D) 3% 
E) greater than 3% 
A) 0)6% 
B) between 0.6% and 2.4% 
C) between 2.4% and 3% 
D) 3% 
E) greater than 3%

Question 5

In the neoclassical growth model, the steady-state capital-labor ratio is determined by the equation

Accepted Answer

A) k = (n + d)y 
B) k = s(n + d) 
C) k = sy/(n + d) 
D) k = y/(n - d) 
E) k = (n + d)/sy 
A) k = (n + d)y 
B) k = s(n + d) 
C) k = sy/(n + d) 
D) k = y/(n - d) 
E) k = (n + d)/sy

Question 6

A neoclassical growth model would predict that if the rates of both population growth and saving increase, then the steady-state capital-labor ratio will

Accepted Answer

A) increase 
B) decrease 
C) stay the same 
D) temporarily increase, but then go back to its original level 
E) most likely change but we cannot say for sure how 
A) increase 
B) decrease 
C) stay the same 
D) temporarily increase, but then go back to its original level 
E) most likely change but we cannot say for sure how

Question 7

Changes in total factor productivity are also called

Accepted Answer

A) the marginal product of labor 
B) the marginal product of capital 
C) changes in input costs 
D) the Cobb-Douglas residual 
E) the Solow residual 
A) the marginal product of labor 
B) the marginal product of capital 
C) changes in input costs 
D) the Cobb-Douglas residual 
E) the Solow residual

Question 8

The Cobb-Douglas aggregate production function provides a fairly good approximation of the U.S.economy if we assume that

Accepted Answer

A) the shares of capital and labor are equal 
B) the share of capital is 0.65 and the share of labor is 0.35 
C) the share of capital is 0.45 and the share of labor is 0.55 
D) the share of capital is 0.25 and the share of labor is 0.75 
E) the share of capital is 0.15 and the share of labor is 0.85 
A) the shares of capital and labor are equal 
B) the share of capital is 0.65 and the share of labor is 0.35 
C) the share of capital is 0.45 and the share of labor is 0.55 
D) the share of capital is 0.25 and the share of labor is 0.75 
E) the share of capital is 0.15 and the share of labor is 0.85

Question 9

Assume a Cobb-Douglas production function where the share of labor is 0.7 and the share of capital is 0.3.If there is no technological progress, labor grows at 2%, and capital grows at 1.5%, then real output will grow by

Accepted Answer

A) 0)45% 
B) 1)50% 
C) 1)85% 
D) 2)85% 
E) 3)05% 
A) 0)45% 
B) 1)50% 
C) 1)85% 
D) 2)85% 
E) 3)05%

Question 10

Assume that the rate of technological advance is 1.5% and both labor and capital grow at a rate of 2%.What is the rate of output growth if labor's share of income is three times as high as capital's share and there are constant returns to scale?

Accepted Answer

A) 1)5% 
B) 2)0% 
C) 3)0% 
D) 3)5% 
E) 5)5% 
A) 1)5% 
B) 2)0% 
C) 3)0% 
D) 3)5% 
E) 5)5%

In a neoclassical growth model, a nation with a declining population growth rate will experience

Which of the following is NOT a source of increased factor productivity?

From 1973 to 1992, by how much more did GDP grow in Japan than in the United States?

Assume labor's share of income is 80% and capital's share of income is 20%.If we assume constant returns to scale, there are no technological advances, and both labor and capital grow at an annual rate of 3%, then the growth rate of output will be

In the neoclassical growth model, the steady-state capital-labor ratio is determined by the equation

A neoclassical growth model would predict that if the rates of both population growth and saving increase, then the steady-state capital-labor ratio will

Changes in total factor productivity are also called

The Cobb-Douglas aggregate production function provides a fairly good approximation of the U.S.economy if we assume that

Assume a Cobb-Douglas production function where the share of labor is 0.7 and the share of capital is 0.3.If there is no technological progress, labor grows at 2%, and capital grows at 1.5%, then real output will grow by

Assume that the rate of technological advance is 1.5% and both labor and capital grow at a rate of 2%.What is the rate of output growth if labor's share of income is three times as high as capital's share and there are constant returns to scale?

Introduction

National income accounting

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Unemployment

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

The national debt

Recession and depression

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters

Exam 3: Growth and accumulation

In a neoclassical growth model, a nation with a declining population growth rate will experience

Which of the following is NOT a source of increased factor productivity?

From 1973 to 1992, by how much more did GDP grow in Japan than in the United States?

Assume labor's share of income is 80% and capital's share of income is 20%.If we assume constant returns to scale, there are no technological advances, and both labor and capital grow at an annual rate of 3%, then the growth rate of output will be

In the neoclassical growth model, the steady-state capital-labor ratio is determined by the equation

A neoclassical growth model would predict that if the rates of both population growth and saving increase, then the steady-state capital-labor ratio will

Changes in total factor productivity are also called

The Cobb-Douglas aggregate production function provides a fairly good approximation of the U.S.economy if we assume that

Assume a Cobb-Douglas production function where the share of labor is 0.7 and the share of capital is 0.3.If there is no technological progress, labor grows at 2%, and capital grows at 1.5%, then real output will grow by

Assume that the rate of technological advance is 1.5% and both labor and capital grow at a rate of 2%.What is the rate of output growth if labor's share of income is three times as high as capital's share and there are constant returns to scale?

Introduction

National income accounting

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Unemployment

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

The national debt

Recession and depression

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters