Question 1

Which feature of the data can the Solow growth model NOT replicate?

Accepted Answer

A) In developed countries, there is steady growth in income per capita. 
B) There is a widening gap between income levels across countries. 
C) The investment rate is positively related to the income per worker. 
D) An increase in the savings rate causes an increase in income per worker. 
E) The population growth rate is negatively related to the income per worker. 
A) In developed countries, there is steady growth in income per capita. 
B) There is a widening gap between income levels across countries. 
C) The investment rate is positively related to the income per worker. 
D) An increase in the savings rate causes an increase in income per worker. 
E) The population growth rate is negatively related to the income per worker.

Question 2

In the Malthusian model, the steady state effects of an increase in z are to

Accepted Answer

A) increase the quantity of land per worker, increase the population, and leave consumption per worker unchanged. 
B) decrease the quantity of land per worker, increase the population, and increase consumption per worker. 
C) shift the production function upwards, but leave the steady state unchanged. 
D) decrease the quantity of land per worker, decrease the population, and leave consumption per worker unchanged. 
E) decrease the quantity of land per worker, increase the population, and leave consumption per worker unchanged. 
A) increase the quantity of land per worker, increase the population, and leave consumption per worker unchanged. 
B) decrease the quantity of land per worker, increase the population, and increase consumption per worker. 
C) shift the production function upwards, but leave the steady state unchanged. 
D) decrease the quantity of land per worker, decrease the population, and leave consumption per worker unchanged. 
E) decrease the quantity of land per worker, increase the population, and leave consumption per worker unchanged.

Question 3

In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to

Accepted Answer

A) not enough consumption per worker. 
B) limits in the ability of government policy makers. 
C) too little savings. 
D) the declining marginal product of labour. 
E) the declining marginal product of capital. 
A) not enough consumption per worker. 
B) limits in the ability of government policy makers. 
C) too little savings. 
D) the declining marginal product of labour. 
E) the declining marginal product of capital.

Question 4

Before the Industrial Revolution, standards of living differed

Accepted Answer

A) greatly over time but differed little across countries. 
B) greatly over time and across countries. 
C) little over time but differed greatly across countries. 
D) little over time and across countries. 
E) greatly over time, but was the same across countries. 
A) greatly over time but differed little across countries. 
B) greatly over time and across countries. 
C) little over time but differed greatly across countries. 
D) little over time and across countries. 
E) greatly over time, but was the same across countries.

Question 5

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

Accepted Answer

A) Robert Lucas. 
B) Thomas Malthus. 
C) Robert Solow. 
D) Adam Smith. 
E) Milton Friedman. 
A) Robert Lucas. 
B) Thomas Malthus. 
C) Robert Solow. 
D) Adam Smith. 
E) Milton Friedman.

Question 6

The Solow residual attempts to measure the amount of output not explained by

Accepted Answer

A) economic projections. 
B) the amount of a nation's human capital. 
C) technological progress. 
D) the direct contribution of labour and capital. 
E) business cycles. 
A) economic projections. 
B) the amount of a nation's human capital. 
C) technological progress. 
D) the direct contribution of labour and capital. 
E) business cycles.

Which feature of the data can the Solow growth model NOT replicate?

In the Malthusian model, the steady state effects of an increase in z are to

In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to

Before the Industrial Revolution, standards of living differed

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

The Solow residual attempts to measure the amount of output not explained by

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

Which feature of the data can the Solow growth model NOT replicate?

In the Malthusian model, the steady state effects of an increase in z are to

In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to

Before the Industrial Revolution, standards of living differed

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

The Solow residual attempts to measure the amount of output not explained by

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