macroecon

the world bank defines extreme poverty as a person living on less than

$1.25 per day

is the growth rate in an economy is 3.5% then its GDP will double in about:

20 years

if the growth rate in an economy is 2%, its gdp will double in about

35 years

if an economys gdp will double in 15 years, then its growth rate must be about

4.7%

the rule of 70 states that the number of years required for a value to double in size is

70 divided by the growth rate

between 1990 and 2010, the number of people in the world living in poverty has

been cut in half

Joseph's schumpeter's idea that waves of innovations lead to business cycles is called

creative destruction

the ability to use physical resources in creative ways to produce goods and services is known as

entrepreneurial ability, technology, and ideas

improvements in technology

explain most of todays

if a countrys population increases at a slower rate than the growth in its real gdp

gdp per capita has increased

technology

improves the productivity of all factors

schumpeter's term creative destruction describes the

innovative dynamism of capitalism

natural gas deposits found in the US over the past decade are an example of an increase in:

land and natural resources

physical capital includes:

manufactured products that are used to produce other goods and services

which of the following is not a factor int he production function

money

which is not a source of productivity growth

moving resources from production to pension benefits

economic growth is most commonly measured by

real gdp per capita

if technology is held constant, an increase in capital concurrent with a decrease in labor input

rise, fall, or stay the same

improvements in production capacity will

shift the PPF outward

Refer to the production possibilities frontiers below. Panel A illustrates _______ economic growth and Panel B illustrates _______ economic growth.

short run; long run

a production function

shows the output that is produced using different combinations of inputs combined with existing technology

the classical form of the production function states that output is determined by

some function of available labor or capital

which of the following occurrences is the key explanation for the high economic growth in the US in the past century

technology improvements

labor includes all of the following factors except

the ability to use physical resources in creative ways to produce goods and services

in the US real gdp is measured by

the bureau of economic analysis

human capital includes

the improvements to labor capabilities from training, education, and apprenticeship programs

if a countrys population increases at a higher rate than the growth in its real gdp

the standard of living int he country has declined

land and natural resources include

water and minerals that come from the earth

policymakers look at _______________ to compare growth rates over an entire year without seasonal ups and downs

year over year GDP growth rates