Question 1

Which of the following is NOT constant when balanced growth is obtained?

Accepted Answer

A) Y / NA 
B) NA 
C) K / NA 
D) all of the above 
E) none of the above 
A) Y / NA 
B) NA 
C) K / NA 
D) all of the above 
E) none of the above

Question 2

Suppose there is an increase in the saving rate.This increase in the saving rate will cause an increase in which of the following once the economy reaches its new steady state equilibrium?

Accepted Answer

A) growth rate of output 
B) growth rate of capital 
C) growth rate of capital per worker 
D) all of the above 
E) none of the above 
A) growth rate of output 
B) growth rate of capital 
C) growth rate of capital per worker 
D) all of the above 
E) none of the above

Question 3

Which of the following represents the fertility of research?

Accepted Answer

A) the protection given to new products by the law 
B) how R&D spending translates into new ideas 
C) the extent to which firms benefit from the results of their own R&D spending 
D) the rate of technological progress 
E) both B and C 
A) the protection given to new products by the law 
B) how R&D spending translates into new ideas 
C) the extent to which firms benefit from the results of their own R&D spending 
D) the rate of technological progress 
E) both B and C

Question 4

In 1965,Gordon Moore predicted that the number of transistors in a chip would double approximately every

Accepted Answer

A) 6-12 months. 
B) 18-24 months. 
C) five years. 
D) 10 years. 
E) none of the above 
A) 6-12 months. 
B) 18-24 months. 
C) five years. 
D) 10 years. 
E) none of the above

Question 5

Which of the following countries had the highest rate of growth of output per worker between 1950 and 2009?

Accepted Answer

A) France 
B) Japan 
C) United States 
D) United Kingdom 
A) France 
B) Japan 
C) United States 
D) United Kingdom

Question 6

Patent protection is important in affecting technological progress because it makes research and development

Accepted Answer

A) diffuse more quickly. 
B) more fertile. 
C) more easily available 
D) more appropriable 
E) none of the above 
A) diffuse more quickly. 
B) more fertile. 
C) more easily available 
D) more appropriable 
E) none of the above

Question 7

Assume the economy has achieved the balanced growth steady state.Explain what factors determine the rates of growth of each of the following variables when balanced growth is achieved: output per effective worker,capital per effective worker,output per worker,output,and consumption per worker.

Accepted Answer

When balanced growth is achieved,K / NA

Question 8

Which of the following represents a dimension of technological progress?

Accepted Answer

A) larger quantities of output for given quantities of capital and labor 
B) better products 
C) a larger variety of products 
D) new products 
E) all of the above 
A) larger quantities of output for given quantities of capital and labor 
B) better products 
C) a larger variety of products 
D) new products 
E) all of the above

Question 9

Which of the following is hypothesized to explain the reduction in the rate of technological progress?

Accepted Answer

A) measurement error 
B) the increase in the size of the service sector 
C) a reduction in R&D spending 
D) all of the above 
E) none of the above 
A) measurement error 
B) the increase in the size of the service sector 
C) a reduction in R&D spending 
D) all of the above 
E) none of the above

Question 10

Graphically illustrate and explain the effects of a reduction in the saving rate on the Solow growth model.In your answer,you must clearly label all curves and the initial and final equilibria.In your answer,explain what happens to the rate of growth of output per worker and the rate of growth of output as the economy adjusts to this decrease in the saving rate.

Accepted Answer

The graph is easy.The saving rate reduct

Question 11

Which of the following best describes a situation where research is considered relatively fertile?

Accepted Answer

A) research that translates into many new products 
B) research that costs the firms relatively little money 
C) research that cannot be easily copied by other firms 
D) all of the above 
E) none of the above 
A) research that translates into many new products 
B) research that costs the firms relatively little money 
C) research that cannot be easily copied by other firms 
D) all of the above 
E) none of the above

Question 12

Explain what factors determine how much investment is required to maintain a given level of capital per effective worker.

Accepted Answer

There are three factors that w

Question 13

Based on recent research,which of the following is the most likely cause of the reduction in the rate of technological progress?

Accepted Answer

A) measurement error 
B) the increase in the size of the service sector 
C) a reduction in R&D spending 
D) a reduction in the fertility of research 
E) all of the above 
A) measurement error 
B) the increase in the size of the service sector 
C) a reduction in R&D spending 
D) a reduction in the fertility of research 
E) all of the above

Question 14

Graphically illustrate and explain the effects of an increase in the rate of technological progress on the Solow growth model.In your answer,you must clearly label all curves and the initial and final equilibria.In your answer,explain what happens to the rate of growth of output per worker and the rate of growth of output as the economy adjusts to this increase in the rate of technological progress.

Accepted Answer

The increase in the rate of TP will caus

Question 15

Suppose there is a decrease in the saving rate.Explain what effect this decrease in the saving rate will have on the rate of growth of output per worker.

Accepted Answer

As described in answers for the previous

Question 16

The rate of growth of output per worker in the United States between 1950 and 2009 was approximately equal to which of the following?

Accepted Answer

A) 1.9% 
B) 3.8% 
C) 4.8% 
D) 5.8% 
A) 1.9% 
B) 3.8% 
C) 4.8% 
D) 5.8%

Question 17

Assume that an economy experiences both positive population growth and technological progress.Once the economy has achieved balanced growth,we know that the output per effective worker ratio (Y / NA)is

Accepted Answer

A) growing at a rate of 0. 
B) growing at a rate of gA + gN. 
C) growing at a rate of gN. 
D) growing at a rate of gA. 
E) none of the above 
A) growing at a rate of 0. 
B) growing at a rate of gA + gN. 
C) growing at a rate of gN. 
D) growing at a rate of gA. 
E) none of the above

Question 18

Assume that an economy experiences both positive population growth and technological progress.Once the economy has achieved balanced growth,we know that output (Y)is

Accepted Answer

A) constant. 
B) growing at a rate of gA + gN. 
C) growing at a rate of gN. 
D) growing at a rate of gA. 
E) growing at a rate of gA - gN. 
A) constant. 
B) growing at a rate of gA + gN. 
C) growing at a rate of gN. 
D) growing at a rate of gA. 
E) growing at a rate of gA - gN.

Question 19

Which country had the highest rate of technological progress from 1985 to 2009?

Accepted Answer

A) Japan 
B) France 
C) United States 
D) United Kingdom 
A) Japan 
B) France 
C) United States 
D) United Kingdom

Question 20

Which of the following will cause an increase in the steady-state growth rate of output per worker?

Accepted Answer

A) an increase in the saving rate 
B) a reduction in the population growth rate 
C) a reduction in the rate of depreciation 
D) a reduction in the saving rate 
E) none of the above 
A) an increase in the saving rate 
B) a reduction in the population growth rate 
C) a reduction in the rate of depreciation 
D) a reduction in the saving rate 
E) none of the above

Exam 12: Technological Progress and Growth

Which of the following is NOT constant when balanced growth is obtained?

Suppose there is an increase in the saving rate.This increase in the saving rate will cause an increase in which of the following once the economy reaches its new steady state equilibrium?

Which of the following represents the fertility of research?

In 1965,Gordon Moore predicted that the number of transistors in a chip would double approximately every

Which of the following countries had the highest rate of growth of output per worker between 1950 and 2009?

Patent protection is important in affecting technological progress because it makes research and development

Assume the economy has achieved the balanced growth steady state.Explain what factors determine the rates of growth of each of the following variables when balanced growth is achieved: output per effective worker,capital per effective worker,output per worker,output,and consumption per worker.

Which of the following represents a dimension of technological progress?

Which of the following is hypothesized to explain the reduction in the rate of technological progress?

Which of the following best describes a situation where research is considered relatively fertile?

Explain what factors determine how much investment is required to maintain a given level of capital per effective worker.

Based on recent research,which of the following is the most likely cause of the reduction in the rate of technological progress?

Suppose there is a decrease in the saving rate.Explain what effect this decrease in the saving rate will have on the rate of growth of output per worker.

The rate of growth of output per worker in the United States between 1950 and 2009 was approximately equal to which of the following?

Assume that an economy experiences both positive population growth and technological progress.Once the economy has achieved balanced growth,we know that the output per effective worker ratio (Y / NA)is

Assume that an economy experiences both positive population growth and technological progress.Once the economy has achieved balanced growth,we know that output (Y)is

Which country had the highest rate of technological progress from 1985 to 2009?

Which of the following will cause an increase in the steady-state growth rate of output per worker?

A Tour of the World

A Tour of the Book

The Goods Market

Financial Markets

Goods and Financial Marketsthe Is-Lm Model

The Labor Market

Putting All Markets Togetherthe As-Ad Model

The Phillips Curve,the Natural Rate of Unemployment,and Inflation

The Crisis

The Facts of Growth

Saving,capital Accumulation,and Output

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

Expectations: the Basic Tools

Financial Markets and Expectations

Expectations,consumption,and Investment

Expectations,output,and Policy

Openness in Goods and Financial Markets

The Goods Market in an Open Economy

Output,the Interest Rate,and the Exchange Rate

Exchange Rate Regimes

Should Policy Makers Be Restrained

Fiscal Policy: a Summing up

Monetary Policy: a Summing up

Epilogue: the Story of Macroeconomics

an Introduction to National Income and Product Accounts

an Introduction to Econometrics

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