8 Numeric and Graphing Questions \[\begin{array} { |c | c | c } \begin{array} { c } \text { Labor demand } \\ \text { (billions of } \\ \text { hours per } \\ \text { year) } \end{array} & \begin{array} { c } \text { Real wage rate } \\ \text { (2005 dollars) } \end{array} & \begin{array} { c } \text { Labor supply } \\ \text { (billions of } \\ \text { hours per } \\ \text { year) } \end{array} \\ \hline 0 & 30 & 6 \\ \hline 1 & 25 & 5 \\ \hline 2 & 20 & 4 \\ \hline 3 & 15 & 3 \\ \hline 4 & 10 & 2 \\ \hline \end{array}\] \[\begin{array} { | c | c | } \hline \begin{array} { c } \text { Employment } \\ \text { (billions of } \\ \text { hours per } \\ \text { year) } \end{array} & \begin{array} { c } \text { Real GDP } \\ \text { (billions of } \\ \text { 2005 dollars) } \end{array} \\ \hline 6 & 95 \\ \hline 5 & 90 \\ \hline 4 & 80 \\ \hline 3 & 60 \\ \hline 2 & 30 \\ \hline \end{array}\] -The first table above gives the labor demand and labor supply schedules for a nation.The second table gives its production function. a) What is the equilibrium real wage rate and the level of employment? b) What is potential GDP?

a)The equilibrium real wage rate is $15

Exam 6: Economic Growth

8 Numeric and Graphing Questions Labor demand (billions of hours per year) Real wage rate (2005 dollars) Labor supply (billions of hours per year) 0 30 6 1 25 5 2 20 4 3 15 3 4 10 2 Employment (billions of hours per year) Real GDP (billions of 2005 dollars) 6 95 5 90 4 80 3 60 2 30 -The first table above gives the labor demand and labor supply schedules for a nation.The second table gives its production function. a) What is the equilibrium real wage rate and the level of employment? b) What is potential GDP?

(Essay)

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Question 21

The gap between real GDP per person in the United States and South America has been narrowing since 1980.

(True/False)

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Question 22

A recent survey by India's central bank reported that spending plans by firms on large new projects fell by 46 percent in the year ending March 2012,compared with the prior year. This decrease will most directly impact

(Multiple Choice)

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Question 23

Potential GDP per labor hour can increase due to

(Multiple Choice)

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Question 24

A factor that turned out to be a weakness of the classical theory of growth is its

(Multiple Choice)

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Question 25

The neoclassical growth theory says,in part,that

(Multiple Choice)

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Question 26

An advance in technology increases the productivity of labor. As a result,the nation's production function shifts and the labor curve shifts rightward.

(Multiple Choice)

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Question 27

A higher saving rate leads to faster growth because

(Multiple Choice)

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Question 28

What is the role of profits in the neoclassical growth theory versus the new growth theory?

(Essay)

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Question 29

-In the illustration above,which figure shows an aggregate production function?

(Multiple Choice)

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Question 30

An increase in saving that leads to more capital accumulation ________ labor productivity.

(Multiple Choice)

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Question 31

An important foundation of the new growth theory is that

(Multiple Choice)

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Question 32

What is the real wage rate?

(Essay)

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Question 33

People base their labor supply on the because they care about .

(Multiple Choice)

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Question 34

When the quantity of labor demanded exceeds the quantity of labor supplied,the real wage rate

(Multiple Choice)

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Question 35

According to the new growth theory,competition

(Multiple Choice)

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Question 36

In 2011,Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2012,real GDP was $4.59 billion and population was 2.97 million.Armenia's real GDP per person in 2012 was

(Multiple Choice)

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Question 37

Full employment corresponds to

(Multiple Choice)

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Question 38

A decrease in population shifts the

(Multiple Choice)

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Question 39

The demand curve for labor shows how many hours workers demand to work.

(True/False)

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Question 40

The gap between real GDP per person in the United States and South America has been narrowing since 1980.

A recent survey by India's central bank reported that spending plans by firms on large new projects fell by 46 percent in the year ending March 2012,compared with the prior year. This decrease will most directly impact

Potential GDP per labor hour can increase due to

A factor that turned out to be a weakness of the classical theory of growth is its

The neoclassical growth theory says,in part,that

An advance in technology increases the productivity of labor. As a result,the nation's production function shifts and the labor curve shifts rightward.

A higher saving rate leads to faster growth because

What is the role of profits in the neoclassical growth theory versus the new growth theory?

-In the illustration above,which figure shows an aggregate production function?

An increase in saving that leads to more capital accumulation ________ labor productivity.

An important foundation of the new growth theory is that

What is the real wage rate?

People base their labor supply on the because they care about .

When the quantity of labor demanded exceeds the quantity of labor supplied,the real wage rate

According to the new growth theory,competition

In 2011,Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2012,real GDP was $4.59 billion and population was 2.97 million.Armenia's real GDP per person in 2012 was

Full employment corresponds to

A decrease in population shifts the

The demand curve for labor shows how many hours workers demand to work.

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 6: Economic Growth

The gap between real GDP per person in the United States and South America has been narrowing since 1980.

A recent survey by India's central bank reported that spending plans by firms on large new projects fell by 46 percent in the year ending March 2012,compared with the prior year. This decrease will most directly impact

Potential GDP per labor hour can increase due to

A factor that turned out to be a weakness of the classical theory of growth is its

The neoclassical growth theory says,in part,that

An advance in technology increases the productivity of labor. As a result,the nation's production function shifts ________ and the ________ labor curve shifts rightward.

A higher saving rate leads to faster growth because

What is the role of profits in the neoclassical growth theory versus the new growth theory?

-In the illustration above,which figure shows an aggregate production function?

An increase in saving that leads to more capital accumulation ________ labor productivity.

An important foundation of the new growth theory is that

What is the real wage rate?

People base their labor supply on the ________ because they care about ________.

When the quantity of labor demanded exceeds the quantity of labor supplied,the real wage rate

According to the new growth theory,competition

In 2011,Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2012,real GDP was $4.59 billion and population was 2.97 million.Armenia's real GDP per person in 2012 was

Full employment corresponds to

A decrease in population shifts the

The demand curve for labor shows how many hours workers demand to work.

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

An advance in technology increases the productivity of labor. As a result,the nation's production function shifts and the labor curve shifts rightward.

People base their labor supply on the because they care about .