Exam 27: The Classical Long-Run Policy Model: Growth and Supply-Side Policies

Some economists argue that well-functioning capital markets that allow funds to move from those who have but do not need funds to those who need but do not have funds, are essential for rapid economic growth. Well-functioning capital markets are an example of:

If per capita output increases by 3 percent and output grows by 4 percent, the population must be:

How do investment in technology and investment in capital differ?

According to new growth theory, the primary source of growth is:

The dire prediction of economic growth based upon the Classical growth model has not been very accurate.What is this prediction and why hasn't it they come true?

Technological development:

Economic growth:

Classical economists predicted that population growth would eventually reduce economic growth because they believed:

An innovator who creates new products and new ways to get business done is referred to as:

A positive externality is the positive effect that:

The rule of 72 implies that a country will double its income in about 9 years if its growth rate is:

According to Say's Law, people:

Small differences in economic growth rates can eventually produce large differences in living standards because of compounding.

According to new growth theory, per capita growth is:

What prediction about growth would most economists make if a government enacts a tax on all transactions in financial markets?

Financial markets are a key institution of growth because:

Many economists now deemphasize capital accumulation as a source of growth because:

The Classical growth model argues that markets are an impediment to growth because they lead to unequal distribution of income.

The law of diminishing marginal productivity applies whenever:

Patents: