Exam 17: Economic Growth: Resources, Technology, Ideas, and Institutions

If an economy's steady annual growth rate falls from 2.5 percent to 2.0 percent,this adds __________ years to the time it takes for the economy to double in size.

Exhibit 17-3 -Refer to Exhibit 17-3 Assume that the starting point on the production function is point A. After an increase in the quantity of capital,there would be a ______________________ which would shift the LRAS curve from LRAS₁ to _______________ resulting in _______________..

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,a rise in labor ________________________,and a rise in capital __________________.

Per-capita real economic growth refers to an increase from one period to the next in

Using the production function Real GDP = T (L,K),define the term production function and describe what each of the variables (T,L,and K)represents. When graphed with Real GDP on the vertical axis and labor on the horizontal axis,which variable(s)can shift the production function and which variable(s)can cause a movement along the production function?

List and describe four factors that can contribute to economic growth.

Country X experiences an increase in Real GDP and an increase in per-capita Real GDP.It follows that

__________ rights refer to the range of laws,rules,and regulations that define rights for the use and transfer of resources.

The range of laws,rules,and regulations that define the allowed forms of use and transfer of resources is called the __________ structure of the economy.

Exhibit 17-1 Production Function Real GDP = T (L, K), such that Real GDP = T(L + K) Assume that the technology coefficient is equal to 0.50. -Refer to Exhibit 17-1. If this production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,and the technology coefficient rises from 0.50 to 0.60,it would cause a

Using the production function Real GDP = T (L,K),and the LRAS curve,describe the process by which a decline in interest rates impacts the use of capital and economic growth.

Neoclassical growth theory placed emphasis on two resources:

Describe new growth theory.Explain how it differs from neoclassical growth theory.

An increase in nominal GDP

In the production function Real GDP = T (L,K),the T represents the _____________ coefficient,the L represents ________________ and the K represents _______________.

An economy growing at a steady rate of 2 percent per year doubles in size approximately every __________ years.

Property rights are a tangible factor in producing economic growth.

Exhibit 17-2 -Refer to Exhibit 17-2. Assume that the starting point is always point 1. Which of the production function graphs shown,(a)or (b),represents an increase in the quantity of labor,and which represents an increase in the technology coefficient,respectively?

Using the labor market,the production function Real GDP = T (L,K),and the LRAS curve,describe the process by which a decrease in income taxes impacts economic growth.

Compare a property rights system in which people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds.We should expect more entrepreneurship under the __________ system and faster real economic growth under the __________ system.