Exam 24: Economic Growth: Theory and Policy

Because business firms often finance new investments with borrowed money, a key determinant of investment spending is

How is human capital most commonly measured?

The invention of the Internet should make poorer countries

Investment spending, capital formation, and rapid technological progress are directly related.

Falling energy prices could explain rising labor productivity in the 1990s

Increases in the supply of scientists and engineers can increase the level of

The lessons of the Japanese recovery were most successfully repeated by

Long-term productivity growth trends have resulted in the

Foreign direct investment generally leads to technological advancements in poorer countries.

The fall of actual GDP below the level of potential GDP is a signal that the economy is in a recession.

In 2010 President Obama proposed more generous tax write-offs for businesses that invest in additional equipment in order to stimulate investment spending.

A country's level of well being is determined primarily by its level of

In general, as productivity levels increase, the potential for productivity growth

Part of the tremendous growth in China can be attributed to

Improvements in the level of technology will generally shift the production function downward.

Poor countries often have difficulty investing in capital because

In general, as the amount of labor input decreases, the amount of output

Real wages usually lag behind the increases in labor productivity.

As the economy becomes more technologically sophisticated, the wage premium can be expected to

The process of invention is the act of