Exam 17: Potential Gdp and Economic Growth

Brian is running for state senator and if elected, pledges to improve economic growth. His plan for economic growth includes increasing spending on public education and providing tax incentives to encourage improved private education. His plan is likely to

When the labor market is in equilibrium, i. the quantity demanded of labor equals the quantity supplied. Ii. there is full employment. Iii. potential GDP is produced.

-The table above gives information about the economy of France. The growth rate of real GDP per person in 1998 is ________ percent.

A firm's demand for labor depends on the

One possible way of achieving faster economic growth is to

Which of the following policies encourages economic growth?

One way to achieve faster growth in GDP per person is to increase the

If the government raises income taxes, then the equilibrium amount of employment ________ and potential GDP ________.

Labor productivity growth depends on i. saving and investment. Ii. increases in human capital. Iii. technological growth.

The demand for labor reflects the point that the

Labor productivity is $30 per hour and aggregate hours are 165 billion hours. What does real GDP equal?

Labor productivity equals ________.

Economic growth is defined as

If U.S. real GDP in 2007 was $13.25 trillion and U.S. real GDP in 2008 was $13.31 trillion, what was the economic growth rate of the United States during this period?

An increase in the wage rate ________ the quantity of labor supplied and ________ the quantity of labor demanded.

Suppose that an Intel worker rearranges existing machines and labor and increases the quantity of chips Intel can produce. Using the productivity curve graphed, this innovation would be described as

If an economy's growth rate of real GDP is 3 percent per year and the growth rate of the population is 2.5 percent per year, the growth rate of real GDP per person is

Explain how the real wage and the extra output produced by each worker determine the quantity of labor demanded by a firm.

The economic growth rate is measured as the

The Rule of 70 states that the level of a variable will double in