Question 1

The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent result ________.

Accepted Answer

A)  a decline in real wages due to an upward shift of the production function 
B)  an increase in the rental price of capital along with a healthy stock market response 
C)  a decline in real wages due to a downward shift of the MPL curve 
D)  an increase in the rental price of capital due to an upward shift of the production function 
E)  none of the above 
A)  a decline in real wages due to an upward shift of the production function 
B)  an increase in the rental price of capital along with a healthy stock market response 
C)  a decline in real wages due to a downward shift of the MPL curve 
D)  an increase in the rental price of capital due to an upward shift of the production function 
E)  none of the above

Question 2

From the Cobb-Douglas production function we learn that there are two sources that help explain cross-country differences in per capita income:________ and ________.

Accepted Answer

A)  capital; labor productivity 
B)  labor share of income; TFP 
C)  TFP; capital per person 
D)  labor per person; capital 
E)  none of the above 
A)  capital; labor productivity 
B)  labor share of income; TFP 
C)  TFP; capital per person 
D)  labor per person; capital 
E)  none of the above

Question 3

Which of the following is (are) likely to cause the marginal product of an input to decrease?

Accepted Answer

A)  an increase in the real price of the input 
B)  a decrease in the quantity of the input used in production 
C)  technological advances 
D)  all of the above 
E)  none of the above 
A)  an increase in the real price of the input 
B)  a decrease in the quantity of the input used in production 
C)  technological advances 
D)  all of the above 
E)  none of the above

Question 4

Constant returns to scale (CRS) implies ________.

Accepted Answer

A)  constant returns to labor 
B)  constant returns to capital 
C)  increasing marginal products 
D)  variable total factor productivity 
E)  diminishing marginal products 
A)  constant returns to labor 
B)  constant returns to capital 
C)  increasing marginal products 
D)  variable total factor productivity 
E)  diminishing marginal products

Question 5

What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up with the rich?

Accepted Answer

A)  to increase their stock of capital 
B)  to increase their labor force 
C)  to find more efficient ways to allocate and use capital and labor 
D)  to ask help of the rich countries 
E)  none of the above 
A)  to increase their stock of capital 
B)  to increase their labor force 
C)  to find more efficient ways to allocate and use capital and labor 
D)  to ask help of the rich countries 
E)  none of the above

The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent result ________.

From the Cobb-Douglas production function we learn that there are two sources that help explain cross-country differences in per capita income: and .

Which of the following is (are) likely to cause the marginal product of an input to decrease?

Constant returns to scale (CRS) implies ________.

What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up with the rich?

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, Policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, Employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters

Exam 3: Aggregate Production and Productivity

The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent result ________.

From the Cobb-Douglas production function we learn that there are two sources that help explain cross-country differences in per capita income:________ and ________.

Which of the following is (are) likely to cause the marginal product of an input to decrease?

Constant returns to scale (CRS) implies ________.

What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up with the rich?

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, Policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Monetary Policy and Aggregate Demand

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, Employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters

From the Cobb-Douglas production function we learn that there are two sources that help explain cross-country differences in per capita income: and .