Exam 17: Potential Gdp and Economic Growth

According to the Rule of 70, if a country grows at 2.0 percent per year instead of 1.5 percent per year, how many fewer years will it take to double its level of real GDP?

In growth theory, the change in a country's standard of living is measured by the change in

What is the law of diminishing returns? Give an example of what the law of diminishing returns implies.

Economic growth is a sustained expansion of production possibilities measured as the increase in ________ over a given period.

Suppose that the Australian economy initially uses 50 billion hours of labor to produce $5 trillion of real GDP. If 50 billion more hours are employed and Australia's real GDP increases by $4 trillion more,

Which of the following is NOT a necessary precondition for economic growth?

The fastest growing nations today

If it took 20 years for real GDP to double, what was the growth rate of real GDP?

During a business cycle recession, it is very likely that real GDP will

Economic freedom is present, at least in part, when

Households increase the quantity of labor supplied when

To measure the change in the standard of living, it is best to use the growth rate

With fixed quantities of capital, land, and entrepreneurship and fixed technology, the amount of real GDP produced increases when ________ increases. i. the quantity of labor employed Ii. the inflation rate Iii. the price level

If the real wage rate decreases from $9.00 per hour to $8.00 per hour, the

Suppose that in the future, real GDP per person grows 2 percent a year in the United States and 4 percent a year in China. It will take real GDP per person approximately ________ years to double in the United States and approximately ________ years to double in China.

17.5 Chapter Figures -The figure above shows the U.S. production function. How would an increase in income taxes be shown in the figure?

The Rule of 70, as applied to real GDP growth, can be used to find the

Which of the following are required for economic growth? i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices

The supply of labor is defined as the relationship between the real wage rate and the

The productivity curve is a relationship between