Exam 6: Economic Growth

Suppose that capital per hour of labor grew enough to increase GDP per hour of labor by 3 percent. Then, using the one- third rule, the growth in capital per hour of labor must have been

Labor productivity is

Hu Tells Leaders China Growth Will Help World Economy Chinese President Hu Jintao told world leaders that his country "has taken an active part in the international cooperation to deal with the financial crisis'' by providing a "$586 billion economic sti focused on building low- rent housing, roads, railways and airports. The package also allows tax deductions for fixed assets such as machinery to stimulate investment. Farmers will also benefit fro subsidies." Hu stated that "China is in itself an important contribution to international financial stability an economic growth.'' China wants to increase investment because this change will

Labor productivity equals

According to MIT economist Robert Solow, in the absence of a change in technology, a 1 percent increase in capital per hour of labor

Over the last 100 years, real GDP per person in the United States has grown at an average rate of approximately 2 percent per year.

Savings is an important factor influencing economic growth because saving

The classical growth theory shows how technology changes continually generate economic growth.

Why did the years between 1961 and 2008 witness such different rates of labor productivity growth?

"Global Innovation 1000-Money Isn't Everything." The report by Booz Allen Hamilton Consulting claims that "There is no direct relationship between spending and significant measures of corporate success such as growth, profitability, and sharehold return. However, the pace of corporate R&D spending continues to accelerate, as many executives Continue to believe that enhanced innovation is required to fuel their future growth. The report provides evidence of the .

If the price level rises relative to the money wage rate, firms the quantity of labor they demand and workers the quantity of labor they supply.

Ongoing economic growth in real GDP per person requires all of the following EXCEPT .

Neoclassical growth theory

New growth theory predicts that

In Dreamland, capital per hour of labor increased by 3 percent a year and technological change increased real GDP per hour of labor by 1 percent a year. Real GDP per hour of labor increased by )

Which of the following statements is correct?

Classical economists believed that

In 2005, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2006, real GDP was $4.59 billion and population was 2.97 million. -In 2008, Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2009, real GDP was $4.59 billion and population was 2.97 million. What was Armenia's economic growth rate from 2008 to 2009?

People base their labor supply on the because they care about .

An increase in productivity relates to