Exam 9: Long-Run Economic Growth

Sustainable long-run economic growth is long-run growth that can continue in the face of decreases in the growth rate of the world's population.

If real GDP grows at an average rate of 3% per year, it will double in _____ years.

India is growing at a rate of 9% per year, and its real GDP per capita is about $3,500, while the United States is growing at a rate of 3% per year, and its real GDP per capita is about $47,000. About how much will India's real GDP per capita be in 20 years?

Convergence is MOST likely between:

Over the course of the twentieth century, real GDP per capita in the United States rose MOSTLY as a result of:

If technology advances,:

An increase in capital stock would:

An example of physical capital is a:

The aggregate production function typically increases at an increasing rate with additions to capital.

The key factor explaining the poor growth performance in Africa is probably:

Economies with high growth rates tend to be those that increase their:

Productivity is equal to:

Reasons for the economic stagnation of Latin America during the last century do NOT include:

Who established the first research and development laboratory?

The economy has grown by 4% per year over the past 30 years. During the same period, the labor force has grown by 1% per year and the quantity of physical capital has grown by 5% per year. Each 1% increase in physical capital per worker is estimated to increase productivity by 0.4%. Assume that human capital has not changed during the past 30 years. How much has growing physical capital per worker contributed as a percentage of total productivity growth?

Use the following to answer questions: -(Figure: Technological Progress and Productivity Growth) Use Figure: Technological Progress and Productivity Growth. Which change in real GDP is MOST likely to have resulted from an increase in the quality (as well as quantity) of government spending on education?

Which factor will NOT increase labor's productivity?

In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000. What was the annual growth rate of real GDP per capita in Techland?

Sweden has real GDP per capita of $50,000, while Chile has real GDP per capita of $25,000. If real GDP per capita in Sweden grows at 2% and Chile's real GDP per capita grows at 4%, how long will it take for real GDP per capita in the two nations to converge?

The convergence hypothesis fits the data only when the factors that affect growth are held equal across countries. These factors do NOT include: