Exam 8: Economic Growth

Which of the following would shift the production function upward?

Suppose labor is the only variable that changes. If production displays diminishing marginal returns, each additional unit of labor

Use the following to answer questions. Exhibit: Aggregate Production Function, Labor Market, and LRAS -(Exhibit: Aggregate Production Function, Labor Market, and LRAS) In Panel (c), the position of the long-run aggregate supply curve is determined by

Economic growth is represented by an outward shift of the production possibilities curve.

If real GDP grows at 3% and population grows at 1.2%, then real GDP per capita grows by 4.2%.

According to the rule of 72, a 12% annual increase in real GDP would lead to a doubling of real GDP in 8 years.

Towards the end of the twentieth century, some of the world's more affluent countries experienced robust growth while others experienced growth slowdown or even stagnation. Which of the following is not a reason for the divergent growth trend?

Use the following to answer questions . Exhibit: Aggregate Production Function -(Exhibit: Aggregate Production Function) In drawing the aggregate production function, which of the following variables is not held constant?

All other things unchanged, which of the following events leads to a shift further outward in the country's production possibility curve?

The rate of economic growth per capita in Mamoogia from 2006 to 2010 was 3.6% per year, while in Kennan, over the same period it was 7.2%. In 2010, per capita real GDP was $28,900 in Mamoogia and $12,700 in Kennan. Assume the growth rate for each country remains the same. Calculate the percentage difference in their levels of potential output in 2050.

An increase in the capital stock would shift the production function _______ and the long-run aggregate supply curve to the _______.

Use the following to answer questions . Exhibit: Economic Growth, AD and AS Analysis -(Exhibit: Economic Growth, AD and AS Analysis) Assume that the economy is initially in long-run equilibrium. If oil prices in the economy increased dramatically and remained high for so long that most of the industries in the economy had to significantly form new capital and retool much of its existing capital, the economy would suffer. In this event,

Holding everything else unchanged, if a nation's output grows at approximately 2.4% per year and its population doubles in 45 years, calculate the approximate rate of change in per capita real GDP.

Suppose the world's population in 2012 is 7.1 billion and is projected to grow at a rate of 1.2% per year. In approximately what year will the world's population be 14.2 billion?

If output per capita doubles in 30 years and the population doubles in 60 years, what is the growth rate of output?

Which of the following applies to economic growth? I. Economic growth allows people to buy more goods and services. II. Economic growth is the expansion of the economy's production possibilities. III. Economic growth is represented by a movement from a point inside the production possibilities curve to a point on the curve.