Exam 13: Technological Progress: the Short, the Medium and the Long Run

Joseph Schumpeter argued that growth was a process of creative destruction. Explain what is meant by the phrase, "creative destruction".

Which of the following institutional arrangements foster economic growth?

Because of labour hoarding, a reduction in output may signal:

Suppose an economy experiences an increase in technological progress. This increase in technological progress will:

Assume that expectations of productivity are slow to adjust. An increase in productivity growth from 2% to 5% will cause:

Some believe that technological progress leads to higher unemployment in the medium run. This claim that technological progress results in an increase in unemployment in the medium run is supported by:

The empirical evidence suggests that periods of high productivity growth will cause which of the following in the medium run?

Assume that the production function for an economy is represented by Y = AN. Which of the following expressions is equal to labour productivity for this economy?

Based on our understanding of the wage- setting equation, which of the following will not cause a decrease in the nominal wage?

Assume an economy experiences, for a given period, a 1% increase in output and a 5% increase in productivity. Given this information, we know that which of the following occurred for this economy during this economy?

Assume that expectations of productivity growth adjust slowly. Now, suppose that there is a 5% decrease in productivity. Explain how this 5% decrease in productivity can cause changes in the unemployment rate.

Assume that expectations of the price level and productivity are accurate. For this economy, we know that the natural rate of unemployment should depend on which of the following?

Suppose an economy experiences an increase in productivity. The AD curve will most likely shift to the right when this increase in productivity is the result of which of the following?

The evidence suggests that recent technological change:

Assume that expectations of P and A are correct. Now suppose that there is a 1.6% increase in A. Given this information, which of the following will occur?

Assume that expectations of P and A are correct. Based on the wage- setting behaviour, the real wage will be equal to which of the following?

Assume an economy experiences an increase in productivity that occurs as a result of a more widespread implementation of a major technological breakthrough. Given this information, we would expect which of the following to occur?

There are some concerns that technological progress can lead to an increase in unemployment. Explain the two related but separate dimensions of technological progress.

Technological unemployment is a macroeconomic phenomenon that occurs when: