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Unformatted text preview: ECO320L-Macroeconomic Theory Final Section 2 Total 100 points NAME: ............................................................. Some Remarks: 1. Books and notes should be closed. 2. You can use a calculator. Exchange of calculator is not allowed. 3. Do not forget to label axes when you draw a graph. 4. Show your calculations. Just answers without showing your work will not earn any points. Good Luck and have a nice holiday! 1 Multiple Choice Questions 2pts each. 1. A decrease in population growth will lead to a in the steady-state capital-labor ratio and a in output per worker. a fall; fall b fall; rise c rise; rise d rise; fall 2. If capital and labor each grow 5 percent in a year, the elasticities of output with respect to capital and labor sum to one, and productivity grows 2 percent in the year, by how much does output grow during the year? a 2% b 3% c 5% d 7% 3. Money’s primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization. This function of money is called a store of value. b medium of exchange. c standard of deferred payment. d unit of account. 4. According to Endogenous Growth Theory a Higher savings rate increases growth rate of the economy b The economy can grow even without growth in productivity c The government can increase the growth rate of the economy in the long-run by decreasing government spending on goods and services d All of the above 5. All of the following are explanations of the post-1973 productivity slowdown except a problems in measuring productivity....
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This note was uploaded on 02/04/2011 for the course ECON 320 taught by Professor Azzamonti during the Fall '08 term at University of Texas at Austin.
- Fall '08