Exam 9: Long-Run Economic Growth

Sustainable long-run economic growth is long-run growth that can continue in the face of decreases in the growth rate of the world's population.

Use the following to answer questions : Figure: Technological Progress and Productivity Growth -(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. Which of the following changes in real GDP is most likely to have resulted from an increase in the quality (as well as quantity) of government spending on education?

Use the following to answer questions : Figure: Technological Progress and Productivity Growth -(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. Which of the following changes in real GDP is most likely to have resulted from an increase in domestic savings?

China has much higher rate of growth than the United States, but the average Chinese household is _____ a typical U.S. household. China's real GDP per capita is _____ that of the United States.

Malthus' predictions have proved to be false because the negative effects on productivity of population growth have been outweighed by advances in technology and increases in both human and physical capital.

If an economy doubles its growth rate in per capita GDP over 14 years, then the growth rate in per capita GDP averaged 5% per year.

In 1820, Mexico had a higher real GDP per capita than Japan, but today Japan's real GDP per capita is higher than Mexico's because Japan's real GDP per capita has grown at _____, and Mexico's real GDP per capita has grown at _____.

Sweden has real GDP per capita of $50,000, while Chile has real GDP per capita of $25,000. If real GDP per capita in Sweden grows at 2% and Chile's real GDP per capita grows at 4%, how long will it take for real GDP per capita in the two nations to converge?

Use the following to answer questions : Figure: Technological Progress and Productivity Growth -(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. If there is significant technological progress (all other factors remaining unchanged), it is best indicated by a move from:

Use the following to answer questions : Scenario: The Aggregate Production Function Holding the human capital per worker and technology unchanged, the estimated aggregate production function in Jamaica is Y / L = 50 × K / L, where Y = real output, L = number of workers, and K = quantity of physical capital. -(Scenario: The Aggregate Production Function) Look at the scenario The Aggregate Production Function. If real GDP per worker equals $3,200, physical capital per worker equals:

Use the following to answer questions: Scenario: Capital An economy initially has 200 units of physical capital per worker. Each year it increases the amount of physical capital by 10%. According to the aggregate production function for this economy, each 1% increase in physical capital per worker, holding human capital and technology constant, increases output per worker by 0.25%. -(Scenario: Capital) Look at the scenario Capital. If there is no inflation and output per worker is initially $1,000, what does the estimated output per worker equal after one year?

A typical family in the United States in 1900 had a purchasing power equal to _____ of the real U.S. GDP per capita in 2010.

Which of the following is a government policy to promote economic growth?

Use the following to answer question: Table: Hypothetical Relationship -(Table: Hypothetical Relationship) Look at the table Hypothetical Relationship. This economy is undergoing:

Carbon taxes and cap and trade systems are market-based incentives that are likely to be effective in limiting greenhouse gas emissions.

Use the following to answer questions: Scenario: Capital An economy initially has 200 units of physical capital per worker. Each year it increases the amount of physical capital by 10%. According to the aggregate production function for this economy, each 1% increase in physical capital per worker, holding human capital and technology constant, increases output per worker by 0.25%. -(Scenario: Capital) Look at the scenario Capital. In three years' time, what is the level of physical capital per worker in this economy?

There are two countries on a peninsula. The first has a per capita annual growth rate of 2%, and its neighbor to the south has an annual growth rate of 5%. How much sooner will the country in the south double its GDP per capita than its neighbor in the north?

The sources of funds for investment spending are:

Use the following to answer questions : Scenario: Technological Progress and Productivity Growth in Techland In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000. -(Scenario: Technological Progress and Productivity Growth in Techland) Look at the scenario Technological Progress and Productivity Growth in Techland. What share of the growth rate of real GDP per capita was attributable to higher total factor productivity?

Use the following to answer questions : Scenario: Growth Rates in Two Countries India is growing at a rate of 9% per year, and its real GDP per capita is about $3,500, while the United States is growing at a rate of 3% per year, and its real GDP per capita is about $47,000. -(Scenario: Growth Rates in Two Countries) Look at the scenario Growth Rates in Two Countries. About how much will U.S. real GDP per capita be in 14 years?