Question 1

Growth in the Solow residual was slowest in the

Accepted Answer

A) 1950s. 
B) 2000s. 
C) 1960s. 
D) 1980s. 
E) 1970s. 
A) 1950s. 
B) 2000s. 
C) 1960s. 
D) 1980s. 
E) 1970s.

Question 2

Growth accounting, popularized by Robert Solow, attempts to attribute a change in aggregate output

Accepted Answer

A) separately between changes in total factor productivity and changes in the supplies of factors of production. 
B) separately between changes in total factor productivity and changes in government policy. 
C) separately between changes in the supplies of factors of production and changes in government policy. 
D) to its most important single cause. 
E) separately between changes in government policy and changes in total factor productivity. 
A) separately between changes in total factor productivity and changes in the supplies of factors of production. 
B) separately between changes in total factor productivity and changes in government policy. 
C) separately between changes in the supplies of factors of production and changes in government policy. 
D) to its most important single cause. 
E) separately between changes in government policy and changes in total factor productivity.

Question 3

The Solow growth model accounts for

Accepted Answer

A) the patterns of international trade among countries. 
B) why richer countries have higher savings rates. 
C) the level of research and development spending in an economy. 
D) business cycles. 
E) why people consume too much. 
A) the patterns of international trade among countries. 
B) why richer countries have higher savings rates. 
C) the level of research and development spending in an economy. 
D) business cycles. 
E) why people consume too much.

Question 4

In an exogenous growth model, growth is caused by

Accepted Answer

A) forces that are not explained by the model itself. 
B) capital accumulation. 
C) total factor productivity. 
D) government policies. 
E) human capital accumulation. 
A) forces that are not explained by the model itself. 
B) capital accumulation. 
C) total factor productivity. 
D) government policies. 
E) human capital accumulation.

Question 5

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years, then GDP would be ________% higher after 100 years than it would have been
Otherwise.

Accepted Answer

A) 3.8 
B) 4.2 
C) 1.3 
D) 2.0 
E) 2.7 
A) 3.8 
B) 4.2 
C) 1.3 
D) 2.0 
E) 2.7

Question 6

In Solow's model of economic growth, suppose that s represents the savings rate, z represents total factor productivity, k represents the level of capital per worker, and $$f ( k )$$ represents the per worker
Production function. Also suppose that n represents the population growth rate and d represents
The depreciation rate of capital. The equilibrium level of capital per worker, $$k ^ { * } ,$$ *, will satisfy the
Equation

Accepted Answer

A)  $f \left( k ^ { * } \right) = ( n + d ) k ^ { * }$. 
B)  $s z k ^ { * } = ( n + d ) f \left( k ^ { * } \right)$. 
C)  $s z f \left( k ^ { * } \right) = ( n + d ) k ^ { * }$. 
D)  $f \left( k ^ { * } \right) = \frac { s } { n + d } k ^ { * }$. 
E)  $n f \left( k ^ { * } \right) = \frac { s k ^ { * } } { s + d }$. 
A)  $f \left( k ^ { * } \right) = ( n + d ) k ^ { * }$. 
B)  $s z k ^ { * } = ( n + d ) f \left( k ^ { * } \right)$. 
C)  $s z f \left( k ^ { * } \right) = ( n + d ) k ^ { * }$. 
D)  $f \left( k ^ { * } \right) = \frac { s } { n + d } k ^ { * }$. 
E)  $n f \left( k ^ { * } \right) = \frac { s k ^ { * } } { s + d }$.

Question 7

In the steady state of Solow's exogenous growth model, an increase in the growth rate of labour force

Accepted Answer

A) decreases output per worker and decreases capital per worker. 
B) increases output per worker and increases capital per worker. 
C) decreases output per worker and the marginal product of labour. 
D) increases output per worker and decreases capital per worker. 
E) decreases output per worker and increases capital per worker. 
A) decreases output per worker and decreases capital per worker. 
B) increases output per worker and increases capital per worker. 
C) decreases output per worker and the marginal product of labour. 
D) increases output per worker and decreases capital per worker. 
E) decreases output per worker and increases capital per worker.

Question 8

What are the key differences between the Malthusian and Solow models of economic growth?

Accepted Answer

The Malthusian model contains no investm

Question 9

As measured by the Gini coefficient

Accepted Answer

A) Income has become less equal over time in Canada since the 1980s. 
B) Income is more unequal in Sweden than in the United States. 
C) Income has become less equal since the 1980s in the United States. 
D) Income is less equal in France than in China. 
E) Income is less equal in Canada than in the United States. 
A) Income has become less equal over time in Canada since the 1980s. 
B) Income is more unequal in Sweden than in the United States. 
C) Income has become less equal since the 1980s in the United States. 
D) Income is less equal in France than in China. 
E) Income is less equal in Canada than in the United States.

Question 10

Recent evidence suggests that the level of output per worker is

Accepted Answer

A) positively correlated with the growth rate in output per worker. 
B) positively correlated with the rate of population growth. 
C) negatively correlated with the rate of population growth. 
D) negatively correlated with growth rate in output per worker. 
E) not correlated with the growth rate in output per worker. 
A) positively correlated with the growth rate in output per worker. 
B) positively correlated with the rate of population growth. 
C) negatively correlated with the rate of population growth. 
D) negatively correlated with growth rate in output per worker. 
E) not correlated with the growth rate in output per worker.

Question 11

In the Malthusian model, state-mandated population control policies are likely to

Accepted Answer

A) have no effect on the equilibrium size of the population or the equilibrium level of consumption per worker. 
B) decrease the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
C) decrease the equilibrium size of the population and have no effect on the equilibrium level of consumption per worker. 
D) have no effect on the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
E) have no effect on the either equilibrium size of the population and the equilibrium level of consumption per worker. 
A) have no effect on the equilibrium size of the population or the equilibrium level of consumption per worker. 
B) decrease the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
C) decrease the equilibrium size of the population and have no effect on the equilibrium level of consumption per worker. 
D) have no effect on the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
E) have no effect on the either equilibrium size of the population and the equilibrium level of consumption per worker.

Question 12

In the Malthusian model, the long-run standard of living is determined entirely by the function g(c), which describes how

Accepted Answer

A) consumption per worker drives production. 
B) the birth rate depends on population growth. 
C) technology affects the growth of output. 
D) consumption per worker drives population growth. 
E) the death rate depends on technological change. 
A) consumption per worker drives production. 
B) the birth rate depends on population growth. 
C) technology affects the growth of output. 
D) consumption per worker drives population growth. 
E) the death rate depends on technological change.

Question 13

The Golden Rule Quantity of capital per worker maximizes the steady-state level of

Accepted Answer

A) savings per worker. 
B) output per worker. 
C) capital per worker. 
D) consumption per worker. 
E) investment per worker. 
A) savings per worker. 
B) output per worker. 
C) capital per worker. 
D) consumption per worker. 
E) investment per worker.

Question 14

In the Malthusian model of the economy

Accepted Answer

A) there is no investment or government spending. 
B) the model is static with only one period. 
C) population growth depends on income per worker. 
D) capital replaces land in the production function. 
E) population growth is negatively correlated with consumption. 
A) there is no investment or government spending. 
B) the model is static with only one period. 
C) population growth depends on income per worker. 
D) capital replaces land in the production function. 
E) population growth is negatively correlated with consumption.

Question 15

According to the Solow growth model, in the long-run steady state, all real aggregate quantities grow

Accepted Answer

A) at the same rate as per worker capital. 
B) depending on how consumption affects population growth. 
C) according to the savings rate in the economy, s. 
D) at the same rate as consumption per worker. 
E) at the rate n, the growth rate of the labour force. 
A) at the same rate as per worker capital. 
B) depending on how consumption affects population growth. 
C) according to the savings rate in the economy, s. 
D) at the same rate as consumption per worker. 
E) at the rate n, the growth rate of the labour force.

Question 16

In the steady state of Solow's exogenous growth model, an increase in total factor productivity

Accepted Answer

A) decreases output per worker and decreases capital per worker. 
B) increases output per worker and increases capital per worker. 
C) decreases output per worker and increases capital per worker. 
D) increases output per worker and decreases capital per worker. 
E) decreases in output per worker only. 
A) decreases output per worker and decreases capital per worker. 
B) increases output per worker and increases capital per worker. 
C) decreases output per worker and increases capital per worker. 
D) increases output per worker and decreases capital per worker. 
E) decreases in output per worker only.

Question 17

Recent evidence shows that there is a

Accepted Answer

A) positive correlation between labour force growth and the quantity of income per worker. 
B) negative correlation between the savings rate and the quantity of income per worker. 
C) negative correlation between capital investment and quantity of income per worker. 
D) negative correlation between the population growth rate and income per worker across countries. 
E) positive correlation between the population growth rate and income per worker across countries. 
A) positive correlation between labour force growth and the quantity of income per worker. 
B) negative correlation between the savings rate and the quantity of income per worker. 
C) negative correlation between capital investment and quantity of income per worker. 
D) negative correlation between the population growth rate and income per worker across countries. 
E) positive correlation between the population growth rate and income per worker across countries.

Question 18

Growth accounting attributes growth in real GDP to

Accepted Answer

A) international trade. 
B) the savings rate and population growth. 
C) growth in consumption expenditure, investment expenditure, and government expenditure. 
D) growth in the capital and labour inputs to production, and growth in total factor productivity. 
E) government programs that increase research and development. 
A) international trade. 
B) the savings rate and population growth. 
C) growth in consumption expenditure, investment expenditure, and government expenditure. 
D) growth in the capital and labour inputs to production, and growth in total factor productivity. 
E) government programs that increase research and development.

Question 19

In an endogenous growth model, growth is caused by

Accepted Answer

A) forces that are not determined by the model itself. 
B) forces determined by the model. 
C) human capital accumulation. 
D) total factor productivity. 
E) capital accumulation. 
A) forces that are not determined by the model itself. 
B) forces determined by the model. 
C) human capital accumulation. 
D) total factor productivity. 
E) capital accumulation.

Question 20

The Lorenz curve illustrates

Accepted Answer

A) the distribution of income in a country. 
B) the capital share of income across countries. 
C) the relationship between the level of per capital income and the population growth rate. 
D) the same thing as the Phillips curve tradeoff. 
E) the time series of the GDP per capita. 
A) the distribution of income in a country. 
B) the capital share of income across countries. 
C) the relationship between the level of per capital income and the population growth rate. 
D) the same thing as the Phillips curve tradeoff. 
E) the time series of the GDP per capita.

Growth in the Solow residual was slowest in the

Growth accounting, popularized by Robert Solow, attempts to attribute a change in aggregate output

The Solow growth model accounts for

In an exogenous growth model, growth is caused by

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years, then GDP would be ________% higher after 100 years than it would have been Otherwise.

In the steady state of Solow's exogenous growth model, an increase in the growth rate of labour force

What are the key differences between the Malthusian and Solow models of economic growth?

As measured by the Gini coefficient

Recent evidence suggests that the level of output per worker is

In the Malthusian model, state-mandated population control policies are likely to

In the Malthusian model, the long-run standard of living is determined entirely by the function g(c), which describes how

The Golden Rule Quantity of capital per worker maximizes the steady-state level of

In the Malthusian model of the economy

According to the Solow growth model, in the long-run steady state, all real aggregate quantities grow

In the steady state of Solow's exogenous growth model, an increase in total factor productivity

Recent evidence shows that there is a

Growth accounting attributes growth in real GDP to

In an endogenous growth model, growth is caused by

The Lorenz curve illustrates

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: the Workleisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: the Consumptionsavings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model With Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models With Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: a Deeper Look

Filters

Exam 7: Economic Growth: Malthus and Solow

Growth in the Solow residual was slowest in the

Growth accounting, popularized by Robert Solow, attempts to attribute a change in aggregate output

The Solow growth model accounts for

In an exogenous growth model, growth is caused by

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years, then GDP would be ________% higher after 100 years than it would have been Otherwise.

In the steady state of Solow's exogenous growth model, an increase in the growth rate of labour force

What are the key differences between the Malthusian and Solow models of economic growth?

As measured by the Gini coefficient

Recent evidence suggests that the level of output per worker is

In the Malthusian model, state-mandated population control policies are likely to

In the Malthusian model, the long-run standard of living is determined entirely by the function g(c), which describes how

The Golden Rule Quantity of capital per worker maximizes the steady-state level of

In the Malthusian model of the economy

According to the Solow growth model, in the long-run steady state, all real aggregate quantities grow

In the steady state of Solow's exogenous growth model, an increase in total factor productivity

Recent evidence shows that there is a

Growth accounting attributes growth in real GDP to

In an endogenous growth model, growth is caused by

The Lorenz curve illustrates

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: the Workleisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: the Consumptionsavings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model With Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models With Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: a Deeper Look

Filters