Exam 28: Economic Growth

If the average annual growth rate of a developing country is 7.2 percent, real GDP will double in _____.

What is the growth in resources when total factor productivity grows by 3.5 percent and the economy grows by 2.7 percent?

Total factor productivity is the ratio of a:

Economic growth is measured as:

The ability of a country to invest in capital goods is tied to _____.

Contrary to popular belief, U.S.productivity growth did not actually improve in the mid 1990s despite the massive growth in technological innovation.

If the per capita real GDP in a country grows, it definitely implies that the average citizen of that country is better off.

Other things equal, advances in technology make resources more productive.

Which of the following contributed to a slowdown in U.S.labor productivity during the 1970s?

If real GDP in Sweden was SEK 822 billion at the end of 1993 and SEK 950 billion at the end of 1994, we can say that the Swedish economy grew at an annual rate of 7% in 1994.

It is believed that the relatively high rate of labor force growth in the developing countries does not translate into a high rate of economic growth because:

Poor countries grow faster than rich countries because of rapid growth in the labor force.

Suppose that an economy grows by 6 percent, total factor productivity grows by 4 percent, and the capital stock increases by 2 percent.If labor and capital are the only inputs used in production and capital contributes 25 percent to GDP, then the labor force has risen by _____.

Productivity in the services industry may be underestimated because measurements of productivity do not take into account the quality of the service provided.

If the growth rate of resources is 2 percent and per capita real output is growing at 4 percent, then total factor productivity has fallen by 4 percent.

If the quality of services rises, higher prices indicate a(n)_____.

U.S.labor productivity had slowed down in the 1970s and 1980s, but recent data shows that labor productivity has once again increased in the country.

We can say that the potential level of real GDP is fixed because the long-run aggregate supply curve is a vertical line.

Assume that the economy grows by 3 percent, total factor productivity grows by 2 percent, and the labor force grows at 2 percent.If labor contributes 40 percent to real GDP, then the stock of capital must have risen by 0.33 percent.

Growth in total factor productivity equals the _____.