Question 1

A benefit of economic growth is increased resource depletion.

Accepted Answer

A) True 
 B)False

Question 2

In dynamic economies, it is true that economic growth may contribute to ________, but it also leads to ________.

Accepted Answer

A)  unemployment; inflation 
B)  job creation; job destruction 
C)  job destruction; job creation 
D)  crime; unemployment 
E)  pollution; price instability 
A)  unemployment; inflation 
B)  job creation; job destruction 
C)  job destruction; job creation 
D)  crime; unemployment 
E)  pollution; price instability

Question 3

Suppose that in 1955 Japan had an initial per capita GDP of $15,000 per year and China had a per capita GDP of $2,500. But China is growing at 7 percent per year and Japan is growing at 2 percent per year. In 2015, ________ would have been the lower-income country, with a per capita GDP of approximately ________.

Accepted Answer

A)  China; $2,500 
B)  Japan; $15,000 
C)  China; $50,000 
D)  Japan; $46,000 
E)  Japan; $105,000 
A)  China; $2,500 
B)  Japan; $15,000 
C)  China; $50,000 
D)  Japan; $46,000 
E)  Japan; $105,000

Question 4

Defining per capita GDP in 2014 as   
and per capita GDP in 2015 as   
the growth rate of per capita GDP,   
from 2014 to 2015 is given by   
.

Accepted Answer

A) True 
 B)False

Question 5

Suppose population growth is given by   , where L0 is the population today,  
Is the population in t periods, and  
Is the population constant growth rate. If we do not know what value  
Takes but do know the values of L0,  
, and t, we can calculate  
By punching ________ into our calculators.

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 6

Which of the following is/are the benefit(s) of economic growth?

Accepted Answer

A)  increases in life expectancy 
B)  reductions in infant mortality 
C)  higher incomes 
D)  an expansion in the range of goods and services available 
E)  All of these answers are correct. 
A)  increases in life expectancy 
B)  reductions in infant mortality 
C)  higher incomes 
D)  an expansion in the range of goods and services available 
E)  All of these answers are correct.

Question 7

Defining per capita GDP in 2016 as y2016 and per capita GDP in 2015 as y2015, the growth rate of per capita GDP,   , from 2015 to 2016 is given by:

Accepted Answer

A)    
B)    . 
C)    . 
D)    . 
E)    . 
A)    
B)    . 
C)    . 
D)    . 
E)    .

Question 8

Suppose k, l, and A grow at constant rates given by   
   
and   
The growth rate of y if   
is

Accepted Answer

A) True 
 B)False

Question 9

Per capita real GDP is given by the equation y =Y/PN, where Y is nominal GDP, P is GDP deflator, and N is population. In the United States, if the average growth rate of nominal GDP is 6.8 percent, inflation is 3.6 percent, and population growth is 1.1 percent, what is the growth of real GDP? Per capita nominal GDP? Per capita real GDP?

Accepted Answer

First we n

Question 10

Economic growth is defined as:

Accepted Answer

A)  the percent change in per capita income, or GDP. 
B)  the percent change in prices, or GDP. 
C)  the decline in the unemployment rate. 
D)  the difference between the nominal and real GDP. 
E)  changes in technology. 
A)  the percent change in per capita income, or GDP. 
B)  the percent change in prices, or GDP. 
C)  the decline in the unemployment rate. 
D)  the difference between the nominal and real GDP. 
E)  changes in technology.

Question 11

If France's per capita GDP is $5,000 in 1950 and Portugal's is $2,500, but Portugal is growing faster, the expectation that sometime in the future Portugal's per capita GDP will equal that of France is called economic:

Accepted Answer

A)  growth. 
B)  divergence. 
C)  convergence. 
D)  dynamics. 
E)  justice. 
A)  growth. 
B)  divergence. 
C)  convergence. 
D)  dynamics. 
E)  justice.

Question 12

Which of the following had a negative growth rate over the past 50 years?

Accepted Answer

A)  Tanzania 
B)  Ethiopia 
C)  Burundi 
D)  the Democratic Republic of Congo 
E)  All of these answers are correct. 
A)  Tanzania 
B)  Ethiopia 
C)  Burundi 
D)  the Democratic Republic of Congo 
E)  All of these answers are correct.

Question 13

Suppose k and l grow at constant rates given by   
and   
and A is a constant. If   
the growth rate of y is

Accepted Answer

A) True 
 B)False

Question 14

Over the past two decades, China's per capita GDP grew an average of about ________ percent.

Accepted Answer

A)  8 
B)  10 
C)  5 
D)  4 
E)  2 
A)  8 
B)  10 
C)  5 
D)  4 
E)  2

Question 15

According to the constant growth rate rule, if a variable starts at some initial value y0 at t = 0 and grows at   at a constant rate  
Then the value of the variable in three periods is given by:

Accepted Answer

A)    . 
B)    . 
C)    . 
D)    . 
E)    . 
A)    . 
B)    . 
C)    . 
D)    . 
E)    .

Question 16

Between 1960 and 2010, Madagascar was one of the fastest-growing countries in the world.

Accepted Answer

A) True 
 B)False

Question 17

Assume that both Japan's and the United States' average annual per capita GDP growth rates are 2 percent per year, and both countries began with an initial per capita GDP of $1,000. However, the United States has been growing since 1915 and Japan only since 1965. In 2015, the United States would have been ________ than Japan.

Accepted Answer

A)  0.37 times poorer 
B)  99 times richer 
C)  2.69 times richer 
D)  4,555 times richer 
E)  0.269 times poorer 
A)  0.37 times poorer 
B)  99 times richer 
C)  2.69 times richer 
D)  4,555 times richer 
E)  0.269 times poorer

Question 18

The relationship between pollution and per capita GDP is documented as:

Accepted Answer

A)  U-shaped. 
B)  an inverse U. 
C)  positively related. 
D)  Nonexistent. 
E)  negatively related. 
A)  U-shaped. 
B)  an inverse U. 
C)  positively related. 
D)  Nonexistent. 
E)  negatively related.

Question 19

Suppose k grows at a rate of   percent and l grows at a rate of  
Percent. If  
Then y grows at ________ percent.

Accepted Answer

A)  6 
B)  5 
C)  7 
D)  -6 
E)  12 
A)  6 
B)  5 
C)  7 
D)  -6 
E)  12

Question 20

In 2000, average per capita income was about ________, while in 1970, average per capita income was ________.

Accepted Answer

A)  $75,000; one-fifth that amount 
B)  $25,000; twice that amount 
C)  $36,000; one-third that amount 
D)  $45,000; about half that amount 
E)  $32,000; more or less the same 
A)  $75,000; one-fifth that amount 
B)  $25,000; twice that amount 
C)  $36,000; one-third that amount 
D)  $45,000; about half that amount 
E)  $32,000; more or less the same

A benefit of economic growth is increased resource depletion.

In dynamic economies, it is true that economic growth may contribute to , but it also leads to .

Suppose that in 1955 Japan had an initial per capita GDP of $15,000 per year and China had a per capita GDP of $2,500. But China is growing at 7 percent per year and Japan is growing at 2 percent per year. In 2015, would have been the lower-income country, with a per capita GDP of approximately .

Defining per capita GDP in 2014 as and per capita GDP in 2015 as the growth rate of per capita GDP, from 2014 to 2015 is given by .

Suppose population growth is given by , where L₀ is the population today, Is the population in t periods, and Is the population constant growth rate. If we do not know what value Takes but do know the values of L₀, , and t, we can calculate By punching ________ into our calculators.

Which of the following is/are the benefit(s) of economic growth?

Defining per capita GDP in 2016 as y₂₀₁₆ and per capita GDP in 2015 as y₂₀₁₅, the growth rate of per capita GDP, , from 2015 to 2016 is given by:

Suppose k, l, and A grow at constant rates given by and The growth rate of y if is

Economic growth is defined as:

If France's per capita GDP is $5,000 in 1950 and Portugal's is $2,500, but Portugal is growing faster, the expectation that sometime in the future Portugal's per capita GDP will equal that of France is called economic:

Which of the following had a negative growth rate over the past 50 years?

Suppose k and l grow at constant rates given by and and A is a constant. If the growth rate of y is

Over the past two decades, China's per capita GDP grew an average of about ________ percent.

According to the constant growth rate rule, if a variable starts at some initial value y₀ at t = 0 and grows at at a constant rate Then the value of the variable in three periods is given by:

Between 1960 and 2010, Madagascar was one of the fastest-growing countries in the world.

The relationship between pollution and per capita GDP is documented as:

Suppose k grows at a rate of percent and l grows at a rate of Percent. If Then y grows at ________ percent.

In 2000, average per capita income was about , while in 1970, average per capita income was .

Introduction to Macroeconomics

Measuring the Macroeconomy

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market, Wages, and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Dsge Models: the Frontier of Business Cycle Research

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 3: An Overview of Long-Run Economic Growth

A benefit of economic growth is increased resource depletion.

In dynamic economies, it is true that economic growth may contribute to ________, but it also leads to ________.

Defining per capita GDP in 2014 as and per capita GDP in 2015 as the growth rate of per capita GDP, from 2014 to 2015 is given by .

Suppose population growth is given by , where L0 is the population today, Is the population in t periods, and Is the population constant growth rate. If we do not know what value Takes but do know the values of L0, , and t, we can calculate By punching ________ into our calculators.

Which of the following is/are the benefit(s) of economic growth?

Defining per capita GDP in 2016 as y2016 and per capita GDP in 2015 as y2015, the growth rate of per capita GDP, , from 2015 to 2016 is given by:

Suppose k, l, and A grow at constant rates given by and The growth rate of y if is

Economic growth is defined as:

If France's per capita GDP is $5,000 in 1950 and Portugal's is $2,500, but Portugal is growing faster, the expectation that sometime in the future Portugal's per capita GDP will equal that of France is called economic:

Which of the following had a negative growth rate over the past 50 years?

Suppose k and l grow at constant rates given by and and A is a constant. If the growth rate of y is

Over the past two decades, China's per capita GDP grew an average of about ________ percent.

According to the constant growth rate rule, if a variable starts at some initial value y0 at t = 0 and grows at at a constant rate Then the value of the variable in three periods is given by:

Between 1960 and 2010, Madagascar was one of the fastest-growing countries in the world.

The relationship between pollution and per capita GDP is documented as:

Suppose k grows at a rate of percent and l grows at a rate of Percent. If Then y grows at ________ percent.

In 2000, average per capita income was about ________, while in 1970, average per capita income was ________.

Introduction to Macroeconomics

Measuring the Macroeconomy

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market, Wages, and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Dsge Models: the Frontier of Business Cycle Research

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

In dynamic economies, it is true that economic growth may contribute to , but it also leads to .

Suppose population growth is given by , where L₀ is the population today, Is the population in t periods, and Is the population constant growth rate. If we do not know what value Takes but do know the values of L₀, , and t, we can calculate By punching ________ into our calculators.

Defining per capita GDP in 2016 as y₂₀₁₆ and per capita GDP in 2015 as y₂₀₁₅, the growth rate of per capita GDP, , from 2015 to 2016 is given by:

According to the constant growth rate rule, if a variable starts at some initial value y₀ at t = 0 and grows at at a constant rate Then the value of the variable in three periods is given by:

In 2000, average per capita income was about , while in 1970, average per capita income was .