Exam 6: Economic Growth

By measuring ________ we can see that the economies of Hong Kong and Singapore are catching up to the economies of North America but that the economies of Central and South America are not.

If the quantity of capital per worker in the economy increases

Which of the following ideas apply to the neoclassical growth theory? I.Technological change results from chance. II.Growth in real GDP stops if technology stops advancing.

-In the above figure, what is the full-employment real wage rate and quantity of hours per year?

An increase in labor hours will lead to

What factors raise the productivity of labor?

If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double?

If the price level rises faster than the money wage rate, the real wage rate falls.

Labor productivity has grown at almost the same rate each year over the last 40 years in the United States.

Classical growth theory states that

"IT Policy Can Spur Economic Growth, Industry Says" As staffers on Capitol Hill know all too well, the growth of technology has created an economy increasingly reliant on energy consumption, as BlackBerrys, laptops, and other devices become everyday necessities. The right policies, however, can make IT growth a part of the energy solution rather than the problem, IT representatives said Monday at a forum, in a congressional office, hosted by the Information Technology & Innovation Foundation. Information technology could reduce the expected growth in carbon emissions by one third over 10 years, said Daniel Castro, a senior analyst with the ITIF. Information and communication technology has "great promise in driving economic growth as well as reducing emissions," added David Isaacs, director of government affairs for Hewlett-Packard, but "policy should drive these results." Www)news.cnet.com 11/17/2008 In order to drive economic growth in real GDP per person, the changes in information technology that the article addresses must

New growth theory claims that economic growth occurs because firms reap profits from research and add to the stock of capital.

The demand for labor curve

Several factors are important for achieving faster economic growth. Which of the following is one of those factors?

Labor productivity is

As the real wage rate increases, the

Labor growth depends mainly on ________ and labor productivity growth depends mainly on ________.

-Real GDP grows when I.the quantities of the factors of production grow. II.persistent advances in technology make factors of production increasingly productive. III.human capital grows.

What is the real wage rate?

Over the past four decades