Question 1

In the steady state of Solow's exogenous growth model,an increase in total factor productivity

Accepted Answer

A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
E)  decreases in output per worker only. 
A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
E)  decreases in output per worker only.

Question 2

In the steady state of Solow's exogenous growth model,an increase in the savings rate

Accepted Answer

A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
E)  increases output per worker, reduces consumption per worker and decreases capital per worker. 
A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
E)  increases output per worker, reduces consumption per worker and decreases capital per worker.

Question 3

The per worker production function relates output per worker

Accepted Answer

A)  to capital per worker. 
B)  to the participation rate. 
C)  to production per worker. 
D)  in different countries. 
E)  total factor productivity. 
A)  to capital per worker. 
B)  to the participation rate. 
C)  to production per worker. 
D)  in different countries. 
E)  total factor productivity.

Question 4

In the Malthusian model,capital in the production function is replaced by

Accepted Answer

A)  natural resources. 
B)  population growth. 
C)  land. 
D)  capital stock. 
E)  total factor productivity. 
A)  natural resources. 
B)  population growth. 
C)  land. 
D)  capital stock. 
E)  total factor productivity.

Question 5

In Canada during the 1870-2004 period,the average annual growth in per capita income

Accepted Answer

A)  fluctuated substantially. 
B)  remained steady at about 2%. 
C)  remained constant until World War II. 
D)  rose with total factor productivity. 
E)  rose with the population growth. 
A)  fluctuated substantially. 
B)  remained steady at about 2%. 
C)  remained constant until World War II. 
D)  rose with total factor productivity. 
E)  rose with the population growth.

Question 6

In more modern times as opposed to the times of Malthus,higher standards of living appear to

Accepted Answer

A)  decrease death rates and increase birth rates. 
B)  decrease death rates and also decrease birth rates. 
C)  decrease death rates and have no effect on birth rates. 
D)  have had effects on neither death rates nor birth rates. 
E)  increase death rates and have no effect on birth rates. 
A)  decrease death rates and increase birth rates. 
B)  decrease death rates and also decrease birth rates. 
C)  decrease death rates and have no effect on birth rates. 
D)  have had effects on neither death rates nor birth rates. 
E)  increase death rates and have no effect on birth rates.

Question 7

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years,then GDP would be ________% higher after 100 years than it would have been otherwise.

Accepted Answer

A)  1.3 
B)  2.0 
C)  2.7 
D)  3.8 
E)  4.2 
A)  1.3 
B)  2.0 
C)  2.7 
D)  3.8 
E)  4.2

Question 8

In the Malthusian model,the population growth rate is

Accepted Answer

A)  exogenous. 
B)  positively related to consumption per worker. 
C)  negatively related to consumption per worker. 
D)  assumed to be constant. 
E)  not related to consumption per worker. 
A)  exogenous. 
B)  positively related to consumption per worker. 
C)  negatively related to consumption per worker. 
D)  assumed to be constant. 
E)  not related to consumption per worker.

Question 9

One plausible explanation of the Canadian productivity slowdown starting in 1973 is that is was the result of sectoral shifts.The relevant sectoral shift in Canada was a shift from

Accepted Answer

A)  manufacturing to services. 
B)  services to manufacturing. 
C)  services to information technology. 
D)  manufacturing to information technology. 
E)  oil to natural gas. 
A)  manufacturing to services. 
B)  services to manufacturing. 
C)  services to information technology. 
D)  manufacturing to information technology. 
E)  oil to natural gas.

Question 10

In the Malthusian model,population growth depends on

Accepted Answer

A)  income per worker. 
B)  total factor productivity. 
C)  level of nutrition. 
D)  consumption per worker. 
E)  labour supply. 
A)  income per worker. 
B)  total factor productivity. 
C)  level of nutrition. 
D)  consumption per worker. 
E)  labour supply.

Question 11

Percentage deviations from trend in the Solow residual are

Accepted Answer

A)  unrelated to the business cycle. 
B)  procyclical and smaller than percentage deviations from trend in GDP. 
C)  procyclical and have about equal magnitude as percentage deviations from trend in GDP. 
D)  procyclical and larger than percentage deviations from trend in GDP. 
E)  related to changes in the labour force. 
A)  unrelated to the business cycle. 
B)  procyclical and smaller than percentage deviations from trend in GDP. 
C)  procyclical and have about equal magnitude as percentage deviations from trend in GDP. 
D)  procyclical and larger than percentage deviations from trend in GDP. 
E)  related to changes in the labour force.

Question 12

Growth accounting,popularized by Robert Solow,attempts to attribute a change in aggregate output

Accepted Answer

A)  to its most important single cause. 
B)  separately between changes in government policy and changes in total factor productivity. 
C)  separately between changes in total factor productivity and changes in the supplies of factors of production. 
D)  separately between changes in the supplies of factors of production and changes in government policy. 
E)  separately between changes in total factor productivity and changes in government policy. 
A)  to its most important single cause. 
B)  separately between changes in government policy and changes in total factor productivity. 
C)  separately between changes in total factor productivity and changes in the supplies of factors of production. 
D)  separately between changes in the supplies of factors of production and changes in government policy. 
E)  separately between changes in total factor productivity and changes in government policy.

Question 13

Recent evidence shows that there is a

Accepted Answer

A)  negative correlation between the population growth rate and income per worker across countries. 
B)  positive correlation between the population growth rate and income per worker across countries. 
C)  negative correlation between the savings rate and the quantity of income per worker. 
D)  positive correlation between labour force growth and the quantity of income per worker. 
E)  negative correlation between capital investment and quantity of income per worker. 
A)  negative correlation between the population growth rate and income per worker across countries. 
B)  positive correlation between the population growth rate and income per worker across countries. 
C)  negative correlation between the savings rate and the quantity of income per worker. 
D)  positive correlation between labour force growth and the quantity of income per worker. 
E)  negative correlation between capital investment and quantity of income per worker.

Question 14

An increase in savings can be brought about

Accepted Answer

A)  by increased total factor productivity. 
B)  by increased consumption per worker. 
C)  in the short run only. 
D)  through government policy. 
E)  by increased labour supply. 
A)  by increased total factor productivity. 
B)  by increased consumption per worker. 
C)  in the short run only. 
D)  through government policy. 
E)  by increased labour supply.

Question 15

For the production function,Y = ,if measured output is ,measured capital input is ,and measured labor input is ,then the Solow residual would be equal to

Accepted Answer

A)   
B)   
C)   
D)   
E)   
A)   
B)   
C)   
D)   
E)

Question 16

Development accounting includes which additional input as a possible explanation of economic growth?

Accepted Answer

A)  human capital 
B)  land 
C)  money 
D)  political stability 
E)  climate 
A)  human capital 
B)  land 
C)  money 
D)  political stability 
E)  climate

Question 17

The biggest contribution to real Canadian GDP growth in the 1970s was due to growth in

Accepted Answer

A)  total factor productivity. 
B)  the capital stock. 
C)  the labour force. 
D)  both the capital stock and the labour force. 
E)  the size of government. 
A)  total factor productivity. 
B)  the capital stock. 
C)  the labour force. 
D)  both the capital stock and the labour force. 
E)  the size of government.

Question 18

In the Solow growth model,the law of motion of capital takes into account

Accepted Answer

A)  the depreciation of old capital. 
B)  the residential nature of houses. 
C)  the mobility of capital. 
D)  the costs of shipping and installing capital. 
E)  the impact of consumption on population growth. 
A)  the depreciation of old capital. 
B)  the residential nature of houses. 
C)  the mobility of capital. 
D)  the costs of shipping and installing capital. 
E)  the impact of consumption on population growth.

Question 19

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

Accepted Answer

A)  Adam Smith. 
B)  Thomas Malthus. 
C)  Robert Solow. 
D)  Milton Friedman. 
E)  Robert Lucas. 
A)  Adam Smith. 
B)  Thomas Malthus. 
C)  Robert Solow. 
D)  Milton Friedman. 
E)  Robert Lucas.

Question 20

The Solow residual attempts to measure the amount of output not explained by

Accepted Answer

A)  technological progress. 
B)  the direct contribution of labour and capital. 
C)  economic projections. 
D)  the amount of a nation's human capital. 
E)  business cycles. 
A)  technological progress. 
B)  the direct contribution of labour and capital. 
C)  economic projections. 
D)  the amount of a nation's human capital. 
E)  business cycles.

In the steady state of Solow's exogenous growth model,an increase in total factor productivity

In the steady state of Solow's exogenous growth model,an increase in the savings rate

The per worker production function relates output per worker

In the Malthusian model,capital in the production function is replaced by

In Canada during the 1870-2004 period,the average annual growth in per capita income

In more modern times as opposed to the times of Malthus,higher standards of living appear to

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years,then GDP would be ________% higher after 100 years than it would have been otherwise.

In the Malthusian model,the population growth rate is

One plausible explanation of the Canadian productivity slowdown starting in 1973 is that is was the result of sectoral shifts.The relevant sectoral shift in Canada was a shift from

In the Malthusian model,population growth depends on

Percentage deviations from trend in the Solow residual are

Growth accounting,popularized by Robert Solow,attempts to attribute a change in aggregate output

Recent evidence shows that there is a

An increase in savings can be brought about

For the production function,Y = ,if measured output is ,measured capital input is ,and measured labor input is ,then the Solow residual would be equal to

Development accounting includes which additional input as a possible explanation of economic growth?

The biggest contribution to real Canadian GDP growth in the 1970s was due to growth in

In the Solow growth model,the law of motion of capital takes into account

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

The Solow residual attempts to measure the amount of output not explained by

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 7: Economic Growth: Malthus and Solow

In the steady state of Solow's exogenous growth model,an increase in total factor productivity

In the steady state of Solow's exogenous growth model,an increase in the savings rate

The per worker production function relates output per worker

In the Malthusian model,capital in the production function is replaced by

In Canada during the 1870-2004 period,the average annual growth in per capita income

In more modern times as opposed to the times of Malthus,higher standards of living appear to

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years,then GDP would be ________% higher after 100 years than it would have been otherwise.

In the Malthusian model,the population growth rate is

One plausible explanation of the Canadian productivity slowdown starting in 1973 is that is was the result of sectoral shifts.The relevant sectoral shift in Canada was a shift from

In the Malthusian model,population growth depends on

Percentage deviations from trend in the Solow residual are

Growth accounting,popularized by Robert Solow,attempts to attribute a change in aggregate output

Recent evidence shows that there is a

An increase in savings can be brought about

For the production function,Y = ,if measured output is ,measured capital input is ,and measured labor input is ,then the Solow residual would be equal to

Development accounting includes which additional input as a possible explanation of economic growth?

The biggest contribution to real Canadian GDP growth in the 1970s was due to growth in

In the Solow growth model,the law of motion of capital takes into account

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

The Solow residual attempts to measure the amount of output not explained by

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters