Question 1

In the Solow model,if k = 8,y = 20,and s = 0.2,what is c?

Accepted Answer

A) 24 
B) 20 
C) 16 
D) 12 
A) 24 
B) 20 
C) 16 
D) 12

Question 2

The growth accounting equation is

Accepted Answer

A) Y = AaKK aNN 
B) Y = AF(K, N) 
C) ΔY/Y = ΔA/A + aKΔK/K + aNΔN/N 
D) ΔY/Y = ΔA/A - aKΔK/K - aNΔN/N 
A) Y = AaKK aNN 
B) Y = AF(K, N) 
C) ΔY/Y = ΔA/A + aKΔK/K + aNΔN/N 
D) ΔY/Y = ΔA/A - aKΔK/K - aNΔN/N

Question 3

Over the past year,output grew 4%,capital grew 2%,and labor grew 1%.If the elasticities of output with respect to capital and labor are 0.3 and 0.7,respectively,how much did productivity grow?

Accepted Answer

A) 2)0% 
B) 2)7% 
C) 3)0% 
D) 3)3% 
A) 2)0% 
B) 2)7% 
C) 3)0% 
D) 3)3%

Question 4

Over the past year,productivity grew 1.8%,capital grew 2%,and labor grew 1%.If the elasticities of output with respect to capital and labor are 0.2 and 0.8,respectively,how much did output grow?

Accepted Answer

A) 1% 
B) 2% 
C) 3% 
D) 4% 
A) 1% 
B) 2% 
C) 3% 
D) 4%

Question 5

In the very long run,the level of consumption per worker can grow continually if

Accepted Answer

A) the saving rate continually falls. 
B) the population growth rate continually rises. 
C) productivity continually improves. 
D) the depreciation rate continually rises. 
A) the saving rate continually falls. 
B) the population growth rate continually rises. 
C) productivity continually improves. 
D) the depreciation rate continually rises.

Question 6

The computerization of police departments throughout the country has greatly reduced the crime rate.What macroeconomic variable is likely to be directly affected by this change?

Accepted Answer

A) Productivity 
B) Inflation 
C) The real interest rate 
D) The trade deficit 
A) Productivity 
B) Inflation 
C) The real interest rate 
D) The trade deficit

Question 7

Over the past year,an economy's labor supply increased from 100 to 102,its capital stock increased from 1000 to 1030,and its output increased from 500 to 525.All measurements are in real terms.Calculate the contributions to economic growth of growth in capital,labor,and productivity if aK = 0.2 and aN = 0.8.

Accepted Answer

@#IMG-DLM& ΔA/A = ΔY/Y - a_K ΔK/K - a_N ΔN/N = 5% - (

Question 8

If capital and labor each grow 5% in a year,the elasticities of output with respect to capital and labor sum to one,and productivity grows 2% in the year,by how much does output grow during the year?

Accepted Answer

A) 2% 
B) 3% 
C) 5% 
D) 7% 
A) 2% 
B) 3% 
C) 5% 
D) 7%

Question 9

In the Solow model,if productivity doesn't change,

Accepted Answer

A) the economy must eventually reach a steady state. 
B) the capital-labor ratio must decline. 
C) the capital-labor ratio must rise. 
D) there can be no saving. 
A) the economy must eventually reach a steady state. 
B) the capital-labor ratio must decline. 
C) the capital-labor ratio must rise. 
D) there can be no saving.

Question 10

The elasticity of output with respect to capital

Accepted Answer

A) is the increase in output resulting from an increase in the capital stock. 
B) is the percentage increase in output resulting from a 1 % increase in the capital stock. 
C) is always greater than one. 
D) is the inverse of the elasticity of output with respect to labor. 
A) is the increase in output resulting from an increase in the capital stock. 
B) is the percentage increase in output resulting from a 1 % increase in the capital stock. 
C) is always greater than one. 
D) is the inverse of the elasticity of output with respect to labor.

Question 11

In the steady-state diagram of the Solow model,an increase in saving per worker is shown by

Accepted Answer

A) shifting the saving-per-worker curve down, resulting in a lower steady-state capital-labor ratio. 
B) shifting the saving-per-worker curve up, resulting in a higher steady-state-capital-labor ratio. 
C) shifting the saving-per-worker curve up, resulting in a lower steady-state capital-labor ratio. 
D) shifting the saving-per-worker curve down, resulting in a higher steady-state capital-labor ratio. 
A) shifting the saving-per-worker curve down, resulting in a lower steady-state capital-labor ratio. 
B) shifting the saving-per-worker curve up, resulting in a higher steady-state-capital-labor ratio. 
C) shifting the saving-per-worker curve up, resulting in a lower steady-state capital-labor ratio. 
D) shifting the saving-per-worker curve down, resulting in a higher steady-state capital-labor ratio.

Question 12

A government policy that would raise the rate of productivity growth is

Accepted Answer

A) shifting infrastructure expenditures to the private sector. 
B) taxing expenditures on research and development. 
C) reducing the government budget surplus. 
D) improving human capital development. 
A) shifting infrastructure expenditures to the private sector. 
B) taxing expenditures on research and development. 
C) reducing the government budget surplus. 
D) improving human capital development.

Question 13

Why do some people think that the productivity slowdown since 1973 is just a return to normalcy after fast productivity growth during the previous 25 years?

Accepted Answer

A) Productivity growth of the previous 25 years was abnormally low. 
B) The Great Depression and World War II had prevented technological opportunities from being exploited. 
C) The United States is the only country to face the slowdown, due to poor regulatory decisions. 
D) The United States has allowed countries like Japan to steal its technological breakthroughs. 
A) Productivity growth of the previous 25 years was abnormally low. 
B) The Great Depression and World War II had prevented technological opportunities from being exploited. 
C) The United States is the only country to face the slowdown, due to poor regulatory decisions. 
D) The United States has allowed countries like Japan to steal its technological breakthroughs.

Question 14

From one year to the next,a country's output rose from 4000 to 4500,its capital stock rose from 10,000 to 12,000,and its labor force declined from 2000 to 1750.Suppose aK = 0.3 and aN= 0.7.
(a)How much did capital contribute to economic growth over the year?
(b)How much did labor contribute to economic growth over the year?
(c)How much did productivity contribute to economic growth over the year?

Accepted Answer

(a)a_K ΔK/K = 0.3(2000 / 10,000)

Question 15

Greenwood and Yorukoglu view the post-1973 productivity slowdown as resulting from

Accepted Answer

A) the information technology revolution. 
B) high oil prices. 
C) measurement errors. 
D) technological depletion. 
A) the information technology revolution. 
B) high oil prices. 
C) measurement errors. 
D) technological depletion.

Question 16

In the Solow model,if f(k)= 2k0.5,s = 0.25,n = 0.05,and d = 0.2,what is the value of k at equilibrium?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
A) 1 
B) 2 
C) 3 
D) 4

Question 17

Total factor productivity growth is that part of economic growth due to

Accepted Answer

A) capital growth plus labor growth. 
B) capital growth less labor growth. 
C) capital growth times labor growth. 
D) neither capital growth nor labor growth. 
A) capital growth plus labor growth. 
B) capital growth less labor growth. 
C) capital growth times labor growth. 
D) neither capital growth nor labor growth.

Question 18

The idea that saving equals investment in the Solow model means that a steady state can be reached only when

Accepted Answer

A) s = k. 
B) s = n + d. 
C) sf(k)= (s + d)k. 
D) sf(k)= (n + d)k. 
A) s = k. 
B) s = n + d. 
C) sf(k)= (s + d)k. 
D) sf(k)= (n + d)k.

Question 19

The bowed shape of the per-worker production function is caused by

Accepted Answer

A) wealth effects that reduce labor supply. 
B) diminishing marginal productivity of capital. 
C) increasing marginal productivity of labor. 
D) increasing marginal productivity of capital. 
A) wealth effects that reduce labor supply. 
B) diminishing marginal productivity of capital. 
C) increasing marginal productivity of labor. 
D) increasing marginal productivity of capital.

Question 20

The idea that measurement problems could explain the productivity slowdown since 1973 is based on the fact that

Accepted Answer

A) official output measures make no adjustment for quality. 
B) output can't be measured. 
C) capital can't be measured. 
D) quality improvements aren't fully accounted for in the data. 
A) official output measures make no adjustment for quality. 
B) output can't be measured. 
C) capital can't be measured. 
D) quality improvements aren't fully accounted for in the data.

In the Solow model,if k = 8,y = 20,and s = 0.2,what is c?

The growth accounting equation is

Over the past year,output grew 4%,capital grew 2%,and labor grew 1%.If the elasticities of output with respect to capital and labor are 0.3 and 0.7,respectively,how much did productivity grow?

Over the past year,productivity grew 1.8%,capital grew 2%,and labor grew 1%.If the elasticities of output with respect to capital and labor are 0.2 and 0.8,respectively,how much did output grow?

In the very long run,the level of consumption per worker can grow continually if

The computerization of police departments throughout the country has greatly reduced the crime rate.What macroeconomic variable is likely to be directly affected by this change?

If capital and labor each grow 5% in a year,the elasticities of output with respect to capital and labor sum to one,and productivity grows 2% in the year,by how much does output grow during the year?

In the Solow model,if productivity doesn't change,

The elasticity of output with respect to capital

In the steady-state diagram of the Solow model,an increase in saving per worker is shown by

A government policy that would raise the rate of productivity growth is

Why do some people think that the productivity slowdown since 1973 is just a return to normalcy after fast productivity growth during the previous 25 years?

Greenwood and Yorukoglu view the post-1973 productivity slowdown as resulting from

In the Solow model,if f(k)= 2k^0.5,s = 0.25,n = 0.05,and d = 0.2,what is the value of k at equilibrium?

Total factor productivity growth is that part of economic growth due to

The idea that saving equals investment in the Solow model means that a steady state can be reached only when

The bowed shape of the per-worker production function is caused by

The idea that measurement problems could explain the productivity slowdown since 1973 is based on the fact that

Introduction to Macroeconomics

The Measurement and Structure of the National Economy

Productivity, output, and Employment

Consumption, saving, and Investment

Saving and Investment in the Open Economy

The Asset Market, money, and Prices

Business Cycles

The Is-Lmad-As Model

Classical Business Cycle Analysis

Keynesianism: the Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

Exam 6: Long-Run Economic Growth

In the Solow model,if k = 8,y = 20,and s = 0.2,what is c?

The growth accounting equation is

Over the past year,output grew 4%,capital grew 2%,and labor grew 1%.If the elasticities of output with respect to capital and labor are 0.3 and 0.7,respectively,how much did productivity grow?

Over the past year,productivity grew 1.8%,capital grew 2%,and labor grew 1%.If the elasticities of output with respect to capital and labor are 0.2 and 0.8,respectively,how much did output grow?

In the very long run,the level of consumption per worker can grow continually if

The computerization of police departments throughout the country has greatly reduced the crime rate.What macroeconomic variable is likely to be directly affected by this change?

If capital and labor each grow 5% in a year,the elasticities of output with respect to capital and labor sum to one,and productivity grows 2% in the year,by how much does output grow during the year?

In the Solow model,if productivity doesn't change,

The elasticity of output with respect to capital

In the steady-state diagram of the Solow model,an increase in saving per worker is shown by

A government policy that would raise the rate of productivity growth is

Why do some people think that the productivity slowdown since 1973 is just a return to normalcy after fast productivity growth during the previous 25 years?

Greenwood and Yorukoglu view the post-1973 productivity slowdown as resulting from

In the Solow model,if f(k)= 2k0.5,s = 0.25,n = 0.05,and d = 0.2,what is the value of k at equilibrium?

Total factor productivity growth is that part of economic growth due to

The idea that saving equals investment in the Solow model means that a steady state can be reached only when

The bowed shape of the per-worker production function is caused by

The idea that measurement problems could explain the productivity slowdown since 1973 is based on the fact that

Introduction to Macroeconomics

The Measurement and Structure of the National Economy

Productivity, output, and Employment

Consumption, saving, and Investment

Saving and Investment in the Open Economy

The Asset Market, money, and Prices

Business Cycles

The Is-Lmad-As Model

Classical Business Cycle Analysis

Keynesianism: the Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

In the Solow model,if f(k)= 2k^0.5,s = 0.25,n = 0.05,and d = 0.2,what is the value of k at equilibrium?