GDP
Financial capital is the
money used to buy physical capital
The increase in real GDP per hour of labor that results from an advance in technology makes labor _______ productive ________
more; at all quantities of capital
The classical growth theory is that real GDP per person
only temporarily rises and then returns to the subsistence level
Crowding out occurs when
the government budget is in deficit and the real interest rate rises
households' labor supply decisions are influenced by all of the following except
the number of full-time jobs available
In new growth theory, the source of economic growth is
the persistent want for a higher standard of living
demand for labor curve shows the relationship between
the quantity of labor businesses are willing to hire and the real wage rate
The supply of labor is the relationship between
the real wage rate and the quantity of labor supplied
The supply of loanable funds increases
when disposable income increases or wealth decreases
potential GDP is the value of the goods and services produced in the United States
when the U.S. economy is at full employment
An increase in expected profit _______ the real interest rate and ________ the quantity of loanable funds.
increases; increases
If the population growth rate is 2 percent, real GDP per person will double in 7 years if real GDP grows by ______ percent per year.
12
l GDP increases from $5 billion to $5.25 billion and the population increases from 2 million to 2.02 million, real GDP per person increases by ___ percent.
4.0
if the price of a U.S. government bond is $50 and the owner of the bond is entitled to $2.50 income each year, then the interest rate on the bond
5 percent
all of the following increase labor productivity except
an increase in consumption
In the loanable funds market, an increase in
expected profit increases the demand for loanable funds
an economy can achieve faster economic growth without
increase in the population growth rate
An increase in the government budget deficit
increases private saving and decreases investment
A government budget surplus
increases the supply of loanable funds
The increase in real GDP per hour of labor that results from an increase in capital per hour of labor
is larger at a small quantity of capital than at a large quantity of capital