Exam 16: Economic Growth

Suppose that an economy grows by 6 percent, total factor productivity grows by 4 percent, and the capital stock increases by 2 percent. If labor and capital are the only inputs used in production and capital contributes 25 percent to GDP, then the labor force has risen by _____.

If the per capita real GDP in a country grows, it definitely implies that the average citizen of that country is better off.

Economic growth measured in terms of an increase in per capita real GDP is a good measure of _____.

Other things remaining equal, total factor productivity will fall if _____.

Economic growth is measured as:

What is the approximate per capita income of the US if the population is 3,405,813 and its GDP is $24 million?

Per capita real GDP is of limited use as a measure of economic well being for all the following reasons, except:

If the growth rate of resources is 2 percent and per capita real output is growing at 4 percent, then total factor productivity has fallen by 4 percent.

The long-run growth of the economy depends on productive resources (land, labor, and capital) and on technological advances.

To calculate the time required by real GDP to double, we _____.

Productivity in the services industry may be underestimated because ____ may not be taken into account.

In developing countries, the labor force typically grows _____.

It is believed that the relatively high rate of labor force growth in the developing countries does not translate into a high rate of economic growth because:

Per capita real GDP is:

As all available statistics show us, because the average annual population growth is 1.4 percent higher in developing countries than in industrial nations, economic growth is lower in low-income countries.

Which of the following stands true for technological innovation?

Other things equal, a country's long-run aggregate supply will shift to the left when _____.

If Australia's real GDP is AUD$434.95 billion in 1999 and the country's average annual growth rate is 2.9 percent, what will its real GDP be in 2004?

Per capita real GDP is obtained by dividing real GDP by the number of people active in the labor force.

Consumer spending is considered a determinant of economic growth.