Question 1

Explain the different dimensions of technological progress.

Accepted Answer

There are several dimensions o

Question 2

What factors determine technological progress?

Accepted Answer

Technological progress depends on (1)the

Question 3

Assume that an economy experiences both positive population growth and technological progress.In this economy,which of the following is constant when balanced growth is achieved?

Accepted Answer

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

Question 4

From 1995 to 2007,the rate of growth of output per worker in China has been approximately equal to

Accepted Answer

A) 5% 
B) 9% 
C) 15% 
D) 18% 
E) 23% 
A) 5% 
B) 9% 
C) 15% 
D) 18% 
E) 23%

Question 5

Suppose policy makers pass a budget that results in an increase in the budget deficit.Also assume that this fiscal policy action results in a reduction in the saving rate.To what extent will this reduction in the saving rate cause permanent changes in the rate of growth of output per worker? Explain.

Accepted Answer

A budget that causes an increase in the

Question 6

Which of the following can help explain the technology gap that exists between some countries?

Accepted Answer

A) poorly established property rights 
B) political instability 
C) the relative absence of entrepreneurs 
D) all of the above 
E) none of the above 
A) poorly established property rights 
B) political instability 
C) the relative absence of entrepreneurs 
D) all of the above 
E) none of the above

Question 7

Assume that an economy experiences both positive population growth and technological progress.A reduction in the saving rate will cause

Accepted Answer

A) no change in K / NA. 
B) a permanent reduction in the rate of growth of output per worker. 
C) a permanent reduction in the rate of growth of output. 
D) no change in Y / NA. 
E) none of the above 
A) no change in K / NA. 
B) a permanent reduction in the rate of growth of output per worker. 
C) a permanent reduction in the rate of growth of output. 
D) no change in Y / NA. 
E) none of the above

Question 8

Explain what factors determine the slope of the required investment line.

Accepted Answer

The slope of the required inve

Question 9

From 1978 to 1995,the rate of growth of output per worker in China appears to be

Accepted Answer

A) the result of capital accumulation. 
B) the result of technological progress. 
C) the result of trade barriers. 
D) equal to that of the United States. 
E) none of the above 
A) the result of capital accumulation. 
B) the result of technological progress. 
C) the result of trade barriers. 
D) equal to that of the United States. 
E) none of the above

Question 10

Assume that an economy experiences both positive population growth and technological progress.Once the economy has achieved balanced growth,we know that growth rate of K / NA is

Accepted Answer

A) gA gN. 
B) gA + gN. 
C) 0. 
D) gA. 
E) none of the above 
A) gA gN. 
B) gA + gN. 
C) 0. 
D) gA. 
E) none of the above

Question 11

Explain what is meant by the fertility and appropriability of the research process.

Accepted Answer

The fertility of research indi

Question 12

Suppose there is a reduction in the saving rate.This decrease in the saving rate will cause a reduction 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 13

Let α represent labor's share of total output.The Solow residual is represented by

Accepted Answer

A) gy - [αgN + (1 - α)gK]. 
B) gy. 
C) gK. 
D) αgN. 
E) 1 / (1-α). 
A) gy - [αgN + (1 - α)gK]. 
B) gy. 
C) gK. 
D) αgN. 
E) 1 / (1-α).

Question 14

Patents represent

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. 
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.

Question 15

Which of the following represents the appropriability 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 16

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

Accepted Answer

A) S / NA = (δ + gA + gN)K / NA. 
B) S / NA = (gA + gN)K / NA. 
C) I / NA = (δ)K / NA. 
D) I = δK. 
E) none of the above 
A) S / NA = (δ + gA + gN)K / NA. 
B) S / NA = (gA + gN)K / NA. 
C) I / NA = (δ)K / NA. 
D) I = δK. 
E) none of the above

Question 17

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

Accepted Answer

A) research that is well suited to its commercial purpose 
B) research that is easily copied by another firm 
C) research that translates into many new products 
D) all of the above 
E) none of the above 
A) research that is well suited to its commercial purpose 
B) research that is easily copied by another firm 
C) research that translates into many new products 
D) all of the above 
E) none of the above

Question 18

Refer to the information above.Which of the following represents the steady-state growth rate of output in this economy?

Accepted Answer

A) 2% 
B) 3% 
C) 5% 
D) 10% 
E) 15% 
A) 2% 
B) 3% 
C) 5% 
D) 10% 
E) 15%

Question 19

Which of the following will cause an increase in the steady-state growth rate of capital?

Accepted Answer

A) an increase in the saving rate 
B) an increase in the population growth rate 
C) a temporary increase in technological progress 
D) all of the above 
E) none of the above 
A) an increase in the saving rate 
B) an increase in the population growth rate 
C) a temporary increase in technological progress 
D) all of the above 
E) none of the above

Question 20

Assume that an economy experiences both positive population growth and technological progress.Once the economy has achieved balanced growth,we know that the capital stock is

Accepted Answer

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

Exam 12: Technological Progress and Growth

Explain the different dimensions of technological progress.

What factors determine technological progress?

Assume that an economy experiences both positive population growth and technological progress.In this economy,which of the following is constant when balanced growth is achieved?

From 1995 to 2007,the rate of growth of output per worker in China has been approximately equal to

Which of the following can help explain the technology gap that exists between some countries?

Assume that an economy experiences both positive population growth and technological progress.A reduction in the saving rate will cause

Explain what factors determine the slope of the required investment line.

From 1978 to 1995,the rate of growth of output per worker in China appears to be

Assume that an economy experiences both positive population growth and technological progress.Once the economy has achieved balanced growth,we know that growth rate of K / NA is

Explain what is meant by the fertility and appropriability of the research process.

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

Let α represent labor's share of total output.The Solow residual is represented by

Patents represent

Which of the following represents the appropriability of research?

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

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

Refer to the information above.Which of the following represents the steady-state growth rate of output in this economy?

Which of the following will cause an increase in the steady-state growth rate of capital?

Assume that an economy experiences both positive population growth and technological progress.Once the economy has achieved balanced growth,we know that the capital stock is

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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