Exam 17: Economic Growth Resources Technology Ideas and Institutions

If Real GDP is $6 billion and the population is 300,000, per-capita Real GDP is

If an economy can increase its steady annual growth rate from 1 percent to 1.5 percent, this reduces the time it takes for the economy to double in size by approximately __________ years.

Neoclassical growth theory emphasized how __________ contribute to growth.

When interest rates fall in a given economy, it causes firms to borrow __________ funds used for purchasing capital goods. The result will be a(n) ___________ in the level of capital employed in the economy. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ____________________ which makes the LRAS curve shift ____________ resulting in ______________________.

"Absolute real economic growth" is defined as an increase in __________ from one period to the next.

New growth theory holds technology to be __________; neoclassical growth theory holds technology to be __________.

Neoclassical growth theory does not emphasize how __________ contribute to growth.

The concept that economic growth can do more than just give us more goods and services goes back to Adam Smith.

Suppose the population of country ABC rises from 40 million to 44 million. If the country's Real GDP rises from $825 billion to $890 billion during this same period, the result is _________________ economic growth.

When interest rates in a given economy are reduced, it causes firms to employ __________ capital goods. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ____________________ .

Compare a property rights system in which people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds. An economist would expect that more people to decide to go to work under the __________ system and that many of those already working would decide to work more under the __________ system.

Suppose the population of a country rises significantly. If the country's Real GDP remains constant, the result is _________________ economic growth.

Exhibit 17-3 -Refer to Exhibit 17-3 Assume that the starting point on the production function is point A. After an increase in the quantity of capital, there would be a ______________________ which would shift the LRAS curve from LRAS₁ to _______________ resulting in _______________..

Stan Laurel and Oliver Hardy acted separately in comedy shorts for the Hal Roach Studio for over a decade without greatly distinguishing themselves from hundreds of other screen comedians. Then in 1927, Roach writer-director Leo McCarey tried them out as a comedy team in one more routine short. Only then was the fantastic chemistry between "the fiddle and the bow" realized. The rest is immortality. This story relates to the "new growth theory" idea of

Economists Barro and McCleary's research regarding the impact of religious beliefs on economic growth noted that a belief in hell matters more to economic growth than the belief in heaven.

Business cycle macroeconomics deals with ___________Natural Real GDP level, while economic growth macroeconomics deals with ________________ Natural Real GDP level.

An economy doubles in size every 20 years if it maintains a steady annual growth rate of about __________ percent.

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in labor ________________________which shifts the LRAS curve ____________ resulting in ______________________.

Lower income taxes cause a ____________shift of the labor supply curve, which then produces__________ Real GDP.

According to economist Benjamin Friedman, sustained economic growth can make people more willing to work toward improving the environment and reducing poverty.