Question 1

In the formula   , the term   represents

Accepted Answer

A)  the change in capital per hour. 
B)  the growth rate of the labor force. 
C)  the growth rate of capital per hour. 
D)  the slope of the productivity function. 
E)  the increase in productivity. 
A)  the change in capital per hour. 
B)  the growth rate of the labor force. 
C)  the growth rate of capital per hour. 
D)  the slope of the productivity function. 
E)  the increase in productivity. C

Question 2

According to the growth-accounting formula, productivity growth

Accepted Answer

A)  can be a result of an upward shift and a rightward movement along the productivity curve. 
B)  can only be a result of a shift of the productivity curve. 
C)  can only be a result of a movement along the productivity curve. 
D)  only occurs when an upward shift of the productivity curve is offset by a leftward movement of that curve. 
E)  cannot be described by the productivity curve. 
A)  can be a result of an upward shift and a rightward movement along the productivity curve. 
B)  can only be a result of a shift of the productivity curve. 
C)  can only be a result of a movement along the productivity curve. 
D)  only occurs when an upward shift of the productivity curve is offset by a leftward movement of that curve. 
E)  cannot be described by the productivity curve. A

Question 3

In the formula   , the term r(K/Y) represents

Accepted Answer

A)  the slope of the productivity function. 
B)  the share of capital income in aggregate income. 
C)  the investment share of GDP. 
D)  the increase in productivity due to a change in the capital stock. 
E)  the slope of the production function. 
A)  the slope of the productivity function. 
B)  the share of capital income in aggregate income. 
C)  the investment share of GDP. 
D)  the increase in productivity due to a change in the capital stock. 
E)  the slope of the production function. B

Question 4

Between 1975 and 1993, most of the increase in productivity in the United States was due to

Accepted Answer

A)  increases in the amount of hours worked, which caused the production function to shift up. 
B)  increases in technology, which caused the productivity function to shift up. 
C)  the productivity function shifting because of growth in capital. 
D)  increases in capital per hour worked, which caused a movement along the productivity function. 
E)  increases in technology, which caused a movement along the productivity function. 
A)  increases in the amount of hours worked, which caused the production function to shift up. 
B)  increases in technology, which caused the productivity function to shift up. 
C)  the productivity function shifting because of growth in capital. 
D)  increases in capital per hour worked, which caused a movement along the productivity function. 
E)  increases in technology, which caused a movement along the productivity function.

Question 5

The productivity curve shifts upward as a result of

Accepted Answer

A)  less technology. 
B)  more technology. 
C)  less capital. 
D)  more capital. 
E)  a higher population. 
A)  less technology. 
B)  more technology. 
C)  less capital. 
D)  more capital. 
E)  a higher population.

Question 6

Use the graph to answer the following questions.   (A)Suppose that between two given years, growth in capital per hour of work and growth in technology were both positive. Pick two points on the graph that represent such a scenario.

(B)Suppose that between two given years, growth in capital per hour of work was zero, and growth in technology was positive. Pick two points on the graph that represent such a scenario.

(C)Suppose that between two given years, growth in capital per hour of work was positive, and growth in technology was negative. Pick two points on the graph that represent such a scenario. What happened to productivity in this particular case?

Accepted Answer

(A)From A to D.
(B)A

Question 7

An increase in capital per hour of work results in

Accepted Answer

A)  an upward shift of the productivity curve. 
B)  a downward shift of the productivity curve. 
C)  an upward and right movement along the productivity curve. 
D)  a downward and left movement along the productivity curve. 
E)  a clockwise rotation of the productivity curve. 
A)  an upward shift of the productivity curve. 
B)  a downward shift of the productivity curve. 
C)  an upward and right movement along the productivity curve. 
D)  a downward and left movement along the productivity curve. 
E)  a clockwise rotation of the productivity curve.

Question 8

The growth rate of productivity due to an increase in capital income equals

Accepted Answer

A)  the share of capital income in aggregate income. 
B)  the slope of the productivity function. 
C)  the growth rate of capital per hour worked times the share of capital income in aggregate income. 
D)  the growth rate of capital per hour worked. 
E)  the growth rate of technology. 
A)  the share of capital income in aggregate income. 
B)  the slope of the productivity function. 
C)  the growth rate of capital per hour worked times the share of capital income in aggregate income. 
D)  the growth rate of capital per hour worked. 
E)  the growth rate of technology.

Question 9

Suppose in 2011 that real GDP of a country is $6 trillion, and the capital stock in real terms is $11 trillion. What is the slope of the productivity function?

Accepted Answer

Since r(K/

Question 10

The growth rate of a variable is measured by

Accepted Answer

A)  the amount the variable changes. 
B)  the change in the variable divided by the variable's new level. 
C)  the variable's new level divided by its initial level. 
D)  the change in the variable divided by the variable's initial level. 
E)  the variable's initial level divided by its new level. 
A)  the amount the variable changes. 
B)  the change in the variable divided by the variable's new level. 
C)  the variable's new level divided by its initial level. 
D)  the change in the variable divided by the variable's initial level. 
E)  the variable's initial level divided by its new level.

Question 11

Suppose the production function Y = f(K,L) is such that   . Plot the production function with Y on the vertical axis and L on the horizontal axis for the case where K = 500. Plot the productivity curve with Y/L on the vertical axis and K/L on the horizontal axis.

Accepted Answer

See the fo

Question 12

The slope times the change along the horizontal axis gives

Accepted Answer

A)  the change along the vertical axis. 
B)  the percentage change along the horizontal axis divided by the percentage change along the vertical axis. 
C)  the percentage change along the vertical axis. 
D)  the percentage change along the horizontal axis. 
E)  the percentage change along the vertical axis divided by the percentage change along the horizontal axis. 
A)  the change along the vertical axis. 
B)  the percentage change along the horizontal axis divided by the percentage change along the vertical axis. 
C)  the percentage change along the vertical axis. 
D)  the percentage change along the horizontal axis. 
E)  the percentage change along the vertical axis divided by the percentage change along the horizontal axis.

Question 13

In the formula   , the term   represents

Accepted Answer

A)  the share of capital income in aggregate income. 
B)  the growth rate of output per hour worked that is due to the growth rate of technology. 
C)  the growth rate of output per hour worked that is due to the rate of growth of capital per hour worked. 
D)  the growth rate of capital per hour worked times the share of capital income in aggregate income. 
E)  the growth rate of technology. 
A)  the share of capital income in aggregate income. 
B)  the growth rate of output per hour worked that is due to the growth rate of technology. 
C)  the growth rate of output per hour worked that is due to the rate of growth of capital per hour worked. 
D)  the growth rate of capital per hour worked times the share of capital income in aggregate income. 
E)  the growth rate of technology.

In the formula , the term represents

According to the growth-accounting formula, productivity growth

In the formula , the term r(K/Y) represents

Between 1975 and 1993, most of the increase in productivity in the United States was due to

The productivity curve shifts upward as a result of

An increase in capital per hour of work results in

The growth rate of productivity due to an increase in capital income equals

Suppose in 2011 that real GDP of a country is $6 trillion, and the capital stock in real terms is $11 trillion. What is the slope of the productivity function?

The growth rate of a variable is measured by

Suppose the production function Y = f(K,L) is such that . Plot the production function with Y on the vertical axis and L on the horizontal axis for the case where K = 500. Plot the productivity curve with Y/L on the vertical axis and K/L on the horizontal axis.

The slope times the change along the horizontal axis gives

In the formula , the term represents

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

Deriving the Formula for the Keynesian Multiplier and the Forward-Looking Consumption Model

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Capital and Financial Markets

Economic Growth and Globalization

International Trade

International Finance

Reading, Understanding, and Creating Graphs

the Miracle of Compound Growth

Present Discounted Value

Filters

Exam 24: Deriving the Growth Accounting Formula

In the formula , the term represents

According to the growth-accounting formula, productivity growth

In the formula , the term r(K/Y) represents

Between 1975 and 1993, most of the increase in productivity in the United States was due to

The productivity curve shifts upward as a result of

An increase in capital per hour of work results in

The growth rate of productivity due to an increase in capital income equals

Suppose in 2011 that real GDP of a country is $6 trillion, and the capital stock in real terms is $11 trillion. What is the slope of the productivity function?

The growth rate of a variable is measured by

Suppose the production function Y = f(K,L) is such that . Plot the production function with Y on the vertical axis and L on the horizontal axis for the case where K = 500. Plot the productivity curve with Y/L on the vertical axis and K/L on the horizontal axis.

The slope times the change along the horizontal axis gives

In the formula , the term represents

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

Deriving the Formula for the Keynesian Multiplier and the Forward-Looking Consumption Model

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Capital and Financial Markets

Economic Growth and Globalization

International Trade

International Finance

Reading, Understanding, and Creating Graphs

the Miracle of Compound Growth

Present Discounted Value

Filters