chapter_6_review-2

B technological progress c economic projections d

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Unformatted text preview: ect contribution of labour and capital. 38) 6 39) In Canada during the 1870 - 2004 period, the average annual growth in per capita income A) fluctuated substantially. B) remained constant until World War II. C) rose with the population growth. D) rose with total factor productivity. E) remained steady at about 2%. 39) 40) In the Malthusian model, an improvement in the technology of growing food is likely to A) increase the equilibrium size of the population and have no effect on the equilibrium level of consumption per worker. B) increase the equilibrium size of the population and increase the equilibrium level of consumption per worker. C) have no effect on both the equilibrium size of the population and the equilibrium level of consumption per worker. D) increase the equilibrium size of the population and decrease the equilibrium level of consumption per worker. E) have no effect on the equilibrium size of the population and increase the equilibrium level of consumption per worker. 40) 41) A pessimistic long run Malthusian result is A) increases in land use lowers standards of living. B) improvements in technology does not improve standards of living. C) population control does not increase total factor productivity. D) higher labour supply does not increase total factor productivity. E) increases in capital stock does not achieve the steady state. 41) 42) In Solow s exogenous growth model, the principal obstacle to continuous growth in output per capita is due to A) the declining marginal product of labour. B) the declining marginal product of capital. C) limits in the ability of government policymakers. D) not enough consumption per worker. E) too little savings. 42) 43) Recent evidence shows that there is a A) negative correlation between the savings rate and the quantity of income per worker. B) negative correlation between capital investment and quantity of income per worker. C) positive correlation between the population growth rate and income per worker across countries. D) negative correlation between the population growth rate and income per worker across countries. E) positive correlation between labour force growth and the quantity of income per worker. 43) 44) Percentage deviations from trend in the Solow residual are A) procyclical and smaller than percentage deviations from trend in GDP. B) procyclical and larger than percentage deviations from trend in GDP. C) related to changes in the labour force. D) procyclical and have about equal magnitude as percentage deviations from trend in GDP. E) unrelated to the business cycle. 44) 7 45) The biggest contribution to real GDP growth in the East Asian Tigers during the period 1966 - 1991 was due to growth in A) total factor productivity. B) the capital stock. C) the size of government. D) the labour force. E) international trade. 45) 46) Malthus was too pe...
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This document was uploaded on 12/11/2013.

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