Exam 17: Potential Gdp and Economic Growth

-The figure above shows the U.S. demand for labor curve. If there is a simultaneous increase in the nominal wage rate of 10 percent and a 10 percent increase in the price level, there will be a

The real wage rate is the ________ divided by the ________.

Economic freedom is a precondition for economic growth. Which of the following is a characteristic of economic freedom? I. A democratic form of government. Ii. Property rights must be protected. Iii. The government must support and pay for inventions and innovations.

Economic growth in Cuba has been slow; what can best explain the slow growth?

________ increases with education, training, and job experience. i. Physical capital Ii. Human capital Iii. Financial capital

Labor productivity is calculated as

If New Zealand is operating at potential GDP, which of the following is true? i. New Zealand only has frictional and structural unemployment. ii. There is no inflation in New Zealand. iii. New Zealand has positive net exports.

Human capital is

Potential GDP is

In India last year, the growth rate of real GDP was 3.5 percent and the population grew from 1,000 million people to 1,100 million. Real GDP per person

If a country experiences a real GDP growth rate of 4 percent, real GDP will double in

Governments should promote education because education contributes to the nation's

A nation's population was 250 million last year and is 255 million this year. If its real GDP was $8.5 trillion last year and is $8.8 trillion this year, what is its growth rate of real GDP per person?

If real GDP increases by 6 percent and at the same time the population increases by 2 percent, then real GDP per person grows by

Suppose India wants to measure how much the standard of living has changed over the last decade. Which piece of data should India use?

The ________ describes the relationship between the amount of labor employed and real GDP.

Why are the governments of developed countries concerned about the quality of education in their countries? What effect does education play in determining the country's economic growth rate and its standard of living? Why does it have this effect?

The productivity curve is a relationship between ________ and ________.

The real wage rate is $35 an hour. At this wage rate there are 100 billion labor hours supplied and 200 billion labor hours demanded. There is a

A country's leadership believes that the neoclassical growth theory is correct. The country already has the necessary preconditions for growth, so suggest policy changes the government might enact to help speed economic growth.