Exam 6: Economic Growth

An increase in labor productivity ________ the real wage rate and an increase in population ________ the real wage rate.

The table below shows data for China. The standard of living between 2003 and 2006 increased by ________.

Over the last 100 years, the average U.S. growth rate in real GDP per person was about

Using the Rule of 70, if China's current growth rate of real GDP per person was 7 percent a year, how long would it take the country's real GDP per person to double?

Which of the following directly creates growth in labor productivity? I.Growth in capital per hour of labor II.Technological change III.Population growth

The real wage rate measures the quantity of goods and services an hour's work will buy.

According to the law of diminishing returns, an additional unit of

"Global Innovation 1000-Money Isn't Everything." The report by Booz Allen Hamilton Consulting claims that "There is no direct relationship between R&D spending and significant measures of corporate success such as growth, profitability, and shareholder return. ...However, the pace of corporate R&D spending continues to accelerate, as many executives continue to believe that enhanced innovation is required to fuel their future growth. Www)boozallen.com 10/11/2005 The report provides ________ evidence of the ________.

Which theory of economic growth concludes that in the long run real GDP per person will be at its subsistence level?

Explain how the labor market and the production function determine potential GDP.

Which growth theory models growth as a perpetual motion machine?

A recent article states that "...gains from two centuries of rapid technological innovation are largely exhausted, and new discoveries lack the same revolutionary quality....{Further}, 80 percent of the growth between 1950 and 1993 came from the new application of old ideas, and these old ideas are now mostly wrung dry." (The Economist, 03/03/2011) -The neoclassical growth theory says, in part, that

Discuss the aggregate production function. How does the aggregate production function relate to the labor market and potential GDP?

Convergence of the income gap has been most dramatic between

Briefly explain how growth in real GDP differs across economies including the United States, Japan, Africa, Central America, Hong Kong, Korea, and Singapore.

Which theory of economic growth concludes that growth can continue indefinitely?

Hu Tells Leaders China Growth Will Help World Economy Chinese President Hu Jintao told world leaders that his country "has taken an active part in the international cooperation to deal with the financial crisis'' by providing a "$586 billion economic stimulus, focused on building low-rent housing, roads, railways and airports. The package also allows tax deductions for fixed assets such as machinery to stimulate investment. Farmers will also benefit from more subsidies." Hu stated that "China is in itself an important contribution to international financial stability and world economic growth.'' Www)bloomberg.com 11/15/2008 China wants to increase investment because this change will

Classical growth theory argues that when real GDP per person rises above the subsistence level

An increase in labor productivity shifts the

Over the past 100 years, in the United States the average growth rate of ________ grew at a faster rate than ________.