Macro

In 2008, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2009, real GDP was $4.59 billion and population was 2.97 million. Armenia's real GDP per person in 2009 was

$1,545

During 2011, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2010, real GDP was 105 billion and the population was 0.85 billion. In 2010, real GDP per person was

$124

During 2011, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2010, real GDP was 105 billion and the population was 0.85 billion. In 2011, real GDP per person was

$128

If real GDP is $800 million and aggregate labor hours are 20 million, labor productivity is

$40 per hour

If real GDP is $13,000 billion and aggregate hours are 270 billion, labor productivity equals

$48 per hour

The real wage rate equals

(money wage rate)/(price level)

Using the Rule of 70, if the country of Flowerdom's current growth rate of real GDP per person was 7 percent a year, how long would it take the country's real GDP per person to double?

10 years

Suppose a country is producing $20 million of real GDP. If the economy grows at 10 percent per year, approximately how many years will it take for real GDP to grow to $80 million?

14

Suppose a nation's population grows by 2 percent and, at the same time, its GDP grows by 5 percent. Approximately how fast will real GDP per person increase?

3 percent per year

During 2009, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2008, real GDP was 105 billion and the population was 0.85 billion. Economia's growth rate of real GDP per person is

3.23 percent

Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP?

35 years

Using the Rule of 70, if the country of Flowerdom's current growth rate of real GDP per person was 10 percent per year, how long would it take the country's real GDP per person to double?

7 years

Slowdonia's current growth rate of real GDP per person is 1 percent a year. Approximately how long will it take to double real GDP per person?

70 years

In 2008, Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2009, real GDP was $4.59 billion and population was 2.97 million. What was Armenia's economic growth rate from 2008 to 2009?

9.0 percent

Real GDP grows when I. the quantities of the factors of production grow II. persistent advances in technology make factors of production increasingly productive II. human capital grows

I, II, and III

Over the past four decades,

US real GDP per person has increased

Which of the following statements is correct?

When workers become more productive, the demand for labor curve shifts rightward

If the real wage rate is such that the quantity of labor supplied equals the quantity of labor demanded,

a full employment equilibrium occurs real GDP equals potential GDP

The best definition for economic growth is

a sustained expansion of production possibilities measured as the increase in real GDP over a given period

Saving and investment that increase a nation's capital lead to

an increase in labor productivity

In addition to saving and investment in capital, making an even larger contribution to long term economic growth in real GDP per person

are technological advances

The growth rate of real GDP per person in United States has

averaged approximately 2 percent per year over the past century

Economic growth is measured by

changes in real GDP

The view that population growth occurs when real growth occurs when real GDP per person exceeds the amount

classical growth theory

Suppose there is a rise in the real wage rate. As a result, the quantity of labor demanded

decreases

Suppose real GDP for a country is $13 trillion in 2007, $14 trillion in 2008, $15 trillion in 2009, and $16 trillion in 2010. Over this time period, the real GDP growth rate is

decreasing

The relationship between the labor employed by a firm and the real wage rate is shown by the

demand for labor curve

If the nation's capital stock increases so that workers become more productive, the

demand for labor will increase

A decrease in the real wage rate

does not shift either the labor demand or labor supply curve

Which of the following statements regarding human capital is incorrect?

education is the only vehicle for the creation of human capital because training simply reinforces what has already been learned

If the demand for labor increases

employment increases the real wage rate increases

Full employment corresponds to

equilibrium in the labor market, with real GDP being equal to potential GDP

The Rule of 70 is used to

estimate how long it will take the level of any variable to double

If the labor and capital grow more quickly, then real GDP will

grow more quickly

Which of the following directly creates growth in labor productivity?

growth in capital per hour of labor and technological change

The historical record for the United States for the past 100 years shows

growth in real GDP per person during most years

If a nation's population grows, then

growth in real GDP per person will be less than the growth of real GDP

We are interested in long term growth primarily because it brings

higher standards of living

Workers who pursue an education directly increase their

human capital

______ is the knowledge and skill that people have obtained from education and on the job training

human capital

Labor productivity rises

if the amount of capital per worker increases

Which of the following is true regarding the labor market?

if the real wage rate falls, the quantity of labor firms demand increases

Real GDP per person in the country of Flip is $10,000 and the growth rate is 10 percent a year. Real GDP per person in the country of Flap is $20,000 and the growth rate is 5 percent a year. When will real GDP per person be greater in Flip than in Flap

in 15 years

In 2008, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2009, real GDP was $4.59 billion and population was 2.97 million. From 2008 to 2009, Armenia's standard of living

increased

Over the past 100 years real GDP per person in the United States, on average, has

increased by about 2 percent per year

Which of the following contributes to an increase in labor productivity?

increased capital stock

Suppose there is a rise in the price level, but no change in the money wage rate. As a result, the quantity of labor demanded

increases

The labor force participation rate

increases as the real wage rate increases

If capital per hour of labor increases, real GDP per hour of labor

increases for a given level of technology

If the level of technology rises, real GDP per hour of labor

increases for any level of capital per hour of labor

Which of the following does not increase labor productivity?

increases in aggregate hours

Labor productivity increases with

increases in capital

An increase in education and training

increases labor productivity

Technological change

increases potential GDP

Moving along the aggregate production function, all of the following are held constant except

labor

An increase in labor productivity

labor demand curve rightward

Moving along the aggregate production function shows the relationship between ____ holding all else constant

labor input and real GDP

According to the law of diminishing returns, an additional unit of

labor produces less output than the previous unit

If capital per worker rises,

labor productivity increases

If the quantity of capital per worker in the economy increases,

labor productivity increases

A higher savings rate that leads to an increase in the capital stock

leads to increases in labor productivity

The historical record for the United States since 1910 shows

mostly positive economic growth, though the Great Depression caused actual GDP to dip well below potential GDP

Which of the following statements are correct? I. The average economic growth rate in real GDP per person in the United States over the last century was 5 percent per year. II. The United States has the highest economic growth rate of any nation

neither I nor II

Equilibrium in the labor market

occurs when actual GDP is equal to potential GDP

Which of the following is TRUE regarding the real wage rate? The real wage rate I. is always greater than the money wage II. measures the quantity of goods and services an hour's work can buy

only II

Factors that influence labor productivity include

physical capital, human capital, and technology

Which of the following is associated with classical growth theory?

population explosions bring real GDP per person back to subsistence levels

All of the following contribute to labor productivity growth except

population growth

If both the supply of labor and the demand for labor increase, then

potential GDP increases

An increase in productivity relates to

producing the same output with fewer labor hours

The real wage rate measures the

quantity of goods and services that an hour of work will buy

If the price level falls by 5 percent and workers money wage rate remains constant, firms

quantity of labor demanded will decrease

If the price level rises by 5 percent and workers money wage rate remains constant, firms

quantity of labor demanded will increase

An increase in physical capital or a technological advance

raises the real wage rate

An aggregate production function shows the relationship between

real GDP and the quantity of labor employed

labor productivity equals

real GDP divided by aggregate labor hours

labor productivity is defined as

real GDP per hour of labor

If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded,

real GDP will not equal potential GDP

Which of the following is used to calculate the standard of living?

real GDP/population

An aggregate production function shows how ___ varies with ____

real GDP; labor

Over the past 100 years, in the United States the average growth rate of _____ grew at a faster rate than ______

real GDP; the population

The aggregate production function shows how ___ varies with ____

real GDP;labor

The quantity of labor demanded depends on the

real wage rate not the money wage rate

People base their labor supply on the ___ because they care about __

real wage; what their earnings will buy

Along the aggregate production function, as the quantity of labor rises, real GDP

rises

When the quantity of labor demanded exceeds the quantity of labor supplied, the real wage rate

rises to eliminate the labor market shortage

Labor productivity, real GDP per labor hour, increases if

saving and investment cause an increase in the quantity of capital per worker there is an increase in the accumulation of human capital new technologies are continuously discovered all of the above

An advance in technology will

shift the production function upward

Human capital is the

skill and knowledge accumulated by humans

Most ____ is embodied in physical capital

technological change

Suppose that in 2009 a country has a population of 1 million and real GDP of $1 billion. In 2010, the population is 1.1 million and the real GDP is $1.1 billion. The real GDP per person growth rate is

zero

If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double?

17.5

Over the past 100 years, real GDP per person in the United States has grown at an average of _____ percent a year

2

Over the last 100 years, the average US growth rate in real GDP per person was about

2 percent per year

Which of the following statements are true regarding the demand for labor? I. The quantity of labor demanded depends on the real wage rate II. If the money wage rate increase and the price level remains the same, the quantity of labor demanded decreases.

I and II

Which of the following statements about world growth during the last half of the 20th century is correct?

Real GDP per person in Hong Kong and Singapore are approaching or surpassing that in the United States

Which of the following statements regarding US economic growth is NOT correct?

The growth rate of real GDP per person accelerate between 1973 to 1984

Which of the following was a period of below average economic growth in the United States?

the 1930s

The labor demand curve slopes downward because

the firm maximizes profits by hiring more labor when the real wage rate falls

A movement along the aggregate production function is the result of a change in

the quantity of labor

Because the productivity of labor decreases as the quantity of labor employed increases,

the quantity of labor a firm demands increases as the real wage rate decreases

Suppose the money wage rate and the price level both fall by 5 percent. As a result,

the quantity of labor demanded does not change because there is no change in the real wage

If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded,

the real wage rate is greater than the equilibrium real wage rate

Which of the following is not an important factor affecting growth in labor productivity?

the speed with which prices fall

Greater labor force participation for households at higher real wage rate is one reason that

the supply of labor curve is upward sloping

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms,

there is a shortage of labor

At the full employment equilibrium in the labor market,

there is neither a shortage not a surplus of labor

The aggregate production function shows that an economy increases its real GDP in the short run by

using more labor