Exam 9: Long-Run Economic Growth

The convergence hypothesis says that:

Most of the rapidly growing Asian nations, though poor, have increased their productivity by providing a very good basic education for their citizens.

If real GDP doubles in 12 years, its average annual growth rate is approximately:

The rule of 70 states that:

An example of a public good that encourages economic growth is public health services, such as vaccinations.

Workers today are more productive than workers were in the past because:

In 1798, the English economist Thomas Malthus predicted that:

For developed countries, which factor is considered the MOST important driver in productivity growth?

According to conditional convergence, the real GDP per capita of poor nations will never catch up to that of wealthy nations because of the condition of the military in poor nations.

After the price of oil increased in the 1970s, the growth rate of the United States declined substantially.

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 U.S. real GDP per capita be in 14 years?

The convergence hypothesis says that international differences in GDP per capita tend to _____ over time.

Research and development is what we call spending to develop and implement new technologies.

The aggregate production function does NOT depend on:

The aggregate production function exhibits _____ returns to _____ capital.

Between 1990 and 2005, the price of oil was high relative to prices in the 1970s and 1980s, and consumers responded by buying small, fuel-efficient cars.

When the government invests in building roads, ports, and a reliable power grid, it is investing in a nation's:

According to the convergence hypothesis, differences in GDP per capita among countries tend to narrow over time because countries that start with a lower real GDP per capita tend to have negative growth rates.

Today, more than _____ of the world's population lives in countries poorer than the United States was a century ago.

Real GDP per capita, growing at a constant rate over a 35-year period, has doubled at the end of that period. What must the annual growth rate of real GDP per capita be for this economy?