Exam 17: Economic Growth Resources Technology Ideas and Institutions

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 technology coefficient, there would be a ______________________ which would shift the LRAS curve from LRAS₁ to _______________ resulting in _______________..

The relation between technology and the quantity of factor inputs to Real GDP is specified by the production function.

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in labor ________________________, and a rise in the technology coefficient __________________.

Exhibit 17-1 Production Function Real GDP = T (L, K), such that Real GDP = T(L + K) Assume that the technology coefficient is equal to 0.40. -Refer to Exhibit 17-1. If this production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, and the technology coefficient rises from 0.40 to 0.50, it would cause a

Technological advances make it possible to

Examples of physical capital include _______________________. Examples of human capital include ______________________________.

The range of laws, rules, and regulations that define the allowed forms of use and transfer of resources is called the __________ structure of the economy.

Two Harvard economists, Robert Barro and Rachel McCleary, have researched the role that ________________ plays in economic growth.

In contrast to neoclassical growth theory, new growth theory lays more emphasis on

_______________________ specifies the relation between technology and the factor inputs to output.

When a country's GDP is higher one year than it was the previous year, absolute real economic growth has occurred.

Neoclassical growth theory treats technology as an _________________ variable, and new growth theory treats technology as an ______________.

In the production function Real GDP = T (L, K, NR, H), the T represents the _____________ coefficient, the L represents ________________, the K represents _______________, the NR represents natural resources, and the H represents ________________.

The term economic growth can be used in reference to absolute real economic growth or to per- capita real economic growth.

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in labor ________________________, and a rise in capital __________________.

Neoclassical growth theory placed emphasis on two resources:

When income taxes are lowered in a given economy, it causes the supply of labor curve to shift __________which ___________ the equilibrium quantity of labor employed. 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 ______________________.

Research by Harvard economists Barro and McCleary revealed that church attendance and economic growth have a(n) _______________ relationship. They also found that specific religious beliefs (in heaven, hell, and afterlife) and economic growth have a(n) ___________ relationship.

A useful rule of thumb called the "Rule of 70" states that if something grows at a constant rate of Z percent per year, it doubles in size approximately every __________ years.

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in capital________________________, and a rise in the technology coefficient __________________.