Exam 6: Economic Growth

An assumption of the neoclassical theory of growth is that

Of the following Asian countries, which has the lowest level of real GDP per person?

All of the following contribute to labor productivity growth EXCEPT:

Labor productivity equals

If the price level rises by 3 percent and workersʹ money wage rates increase by 2 percent, then the

The real wage rate will fall if the

Classical growth theory proposes that real GDP growth is ____________and that real GDP per person will________ the subsistence level.

The aggregate production function relating real GDP to labor hours

Neoclassical growth theory attributes economic growth to

What factors raise the productivity of labor?

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

Real GDP grows when I. the quantities of the factors of production grow II. persistent advances in technology make factors of production increasingly productive III. human capital grows

Over the past four decades,

Neoclassical growth theory

Suppose a country is producing $20 million of real GDP. If the economy grows at 10 percent per year, approximately how many years will to take for real GDP to grow to $80 million?

With no change in labor productivity, what would happen to the real wage rate and potential GDP if the population increased?

We are interested in long-term growth primarily because it brings

An increase in the working-age population results in a

The growth theory that predicts perpetual economic growth is

Strategy to Address Dependence on Foreign Workers, Labour Market Demands The prime minister of Malaysia announced his governmentʹs ʺimmediate focus would be to enhance skills development and improve the quality of education.ʺ By ʺthe constant upgrading of skills of the countryʹs workforceʺ he hoped to improve the countryʹs ʺglobal competitiveness and raise average incomes of workers.8 The long-run benefit of enhancing ʺskill development and improve. educationʺ is to