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

For this question,assume that expectations of productivity are slow to adjust.An increase in productivity growth from 1% to 3% will cause

When was the last year that GDP per capita in North Korea was approximately equal to GDP per capita in South Korea?

The evidence suggests that recent technological change

First,explain each of the following: hysterisis and Eurosclerosis.Second,explain how each of them can be used to explain the relatively high natural rate of unemployment in Europe.

Assume an economy experiences,for a given period,a 4% increase in output and a 2% increase in productivity.Given this information,we know that which of the following occurred for this economy during this period?

Which of the following is NOT believed to cause recent increases in wage inequality?

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

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 period?

For this question,assume that expectations of P and A are correct.Now suppose that there is a 1% increase in A.Given this information,which of the following will occur?

Suppose an economy is characterized by the equations below: Price setting: P= (1+m) (W / A) Wage setting: W=AP(1-u) Solve for the natural rate of unemployment if the markup (m)is equal to 4%.

In recent years,the increasing relative wage of skilled labor has been mostly due to