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