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Questions 1-5
Questions 6-10
Questions 11-15
Questions 16-20
Questions 21-25
100
Total factor productivity growth is part of economic growth due to what?
What is neither capital growth nor labor growth
100
What explains the long-run growth of per capita GDP?
What is Technical progress, which in turn stimulates growth of the capital stock.
100
What must occur to sustain economic growth in the long run?
What is capital accumulation
100
What is c in the nominal gdp formula?
What is C = personal consumption expenditures (durable consumer goods, nondurable consumer goods, consumer expenditures for services)
100
When the overall price level decreases
What is deflation
200
What explains the long-run growth of aggregate supply?
What is growth of labor, capital, and technology
200
Why do countries like the United States, Germany, and Japan all seem to be converging to the same level of per capita GDP?
What is They have similar technologies and are converging to similar per-capita stocks of capital.
200
Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run, what happens?
What is output per capita will be greater in A than B
200
What is I in the nominal gdp formula?
What is I= gross private domestic investment (all final purchases of capital by businesses, all construction, changes in inventories)
200
when the value of goods and services a country imports is less than the value of goods and services it exports
What is A trade surplus
300
Is it possible for an economy to continue growing forever solely by accumulating more capital?
What is no
300
Why don’t all countries converge to the same level of per capita GDP as the United States, Germany, and Japan?
What is Some countries seem to have different levels of technology (interpreted broadly to include factors like political stability, the legal system, the security of property rights, the ability to enforce contracts, etc.).
300
If we divide 70 by the annual rate of inflation, this quotient is the number of years it takes for inflation to double the price level.
What is Rule of 70 -
300
What is g in the nominal gdp formula?
What is G = government purchases (government spending on products and resources)
300
When overall price levels rise over time, this is referred to as
What is inflation
400
How does an increase in the saving rate affect economic growth ?
What is A higher saving rate does not permanently affect the growth rate in the Solow model. A higher saving rate does result in a higher steady-state capital stock and a higher level of output. The shift from a lower to a higher steady-state level of output causes a temporary increase in the growth rate. In some newer theories of growth, a higher saving rate may permanently raise the rate of economic growth. These newer theories have not been subjected to rigorous empirical testing, however.
400
How does an increase in the tax rate on income from capital affect economic growth?
What is In the Solow model, the capital income tax rate has no permanent effect on the growth rate of output. An increase in the capital income tax rate lowers the saving rate, however. The effects of a change in the saving rate are discussed in question 3 above.
400
Two types of inflation
What is demand pull, cost push
400
5 percent
What is full employment
400
When an economy's overall production grows faster than its population, this is referred to as
What is long-run per capita
500
How does an increase in the population growth rate affect economic growth?
What is In the Solow model, an increase in the population growth rate raises the growth rate of aggregate output but has no permanent effect on the growth rate of per capita output. An increase in the population growth rate lowers the steady-state level of per capita output.
500
What would cause a reduction in output per worker in the long run?
What is an increase in the number of workers
500
3 types of unemployment
What is structural, frictional, and cyclical
500
is increasing inflation and rising unemployment in an economy at the same time.
What is stagflation?
500
What type of capital is knowledge?
What is human capital