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Unformatted text preview: Macroeconomics Test Yourself Chapter12 1. Research is considered relatively fertile if it a. translates into many new products. b. costs the firms relatively little money. c. cannot be easily copied by other firms. d. can be easily understood, even by those with little technical background. e. has direct applications in the field of agriculture. 2. In the production function Y = f(K, NA), if "A" doubles, a. the same output can be produced with half the labor. b. the same output can be produced with half the capital. c. the same quantity of labor can produce twice the output. d. all of the above. e. none of the above. For the following questions, assume that (1) the rate of depreciation is 10% per year, (2) the population growth rate is 2% per year, and (3) the growth rate of technology is 3% per year. 3. The annual growth rate of "effective labor" in the steady state in this economy is a. 2%. b. 3%. c. 5%. d. 10%. e. 15%. 4. The level of investment needed to maintain a constant capital stock (K) in this economy is a. 02K. b. 03K. c. 05K. d. 10K. e. 15K. 5. The level of investment needed to maintain constant capital (K) per effective worker in this economy is a. 02K....
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