Exam 17: Potential Gdp and Economic Growth

Suppose that real GDP grows at 3 percent per year.What is the growth rate of real GDP per person if the population grows at: a.2 percent? What happens to the standard of living? b.3 percent? What happens to the standard of living? c.4 percent? What happens to the standard of living?

-The table above gives information about the economy of Spain.If the growth rate in 1998 is maintained,real GDP will double in ________ years.

The growth rate of real GDP per person equals the

During 2005,real GDP in Ireland grew 9.8 percent.If Ireland maintains this level of growth in the future,real GDP will double in approximately how many years?

Which of the following policies encourages economic growth?

-The figure above shows the U.S.supply of labor curve.What was the affect of the decline in birth rates during the 1960s and 1970s on the supply of labor curve in the 1980s?

If the government increases unemployment benefits,then the labor

Labor productivity is $20 per hour and aggregate hours are 400 billion hours. a.What does real GDP equal? b.Because of technological advances,labor productivity doubles to $40 per hour.Furthermore,assume that aggregate hours decrease to 300 billion hours.What does real GDP equal?

The Bubby Gum factory produces bubble gum.Joanne is one of the employees,and she produces 10 packs of bubble gum per hour.Joanne's money wage rate is $12 per hour.Based on this information,the Bubby Gum company should

-The figure above shows the U.S.demand for labor curve.If there is a simultaneous increase in the nominal wage rate of 10 percent and a 10 percent increase in the price level,there will be a

Economic growth is defined as

One way to achieve faster growth in GDP per person is to increase the

Over the past 110 years,real GDP per person in the United States has grown at an average rate of about ________ per year.

-The figure above shows the U.S.production function.How would an increase in income taxes be shown in the figure?

The widespread adoption of computers in the workplace has likely led to

Real GDP is $9 trillion in the current year and $8.6 trillion in the previous year.The economic growth rate between these years has been

If the economy is fully employed,which of the following is true?

Suppose that Australia has fully employed all of its resources.This situation means that Australia

The labor force participation rate

Which of the following statements is true?