Question 1

What three factors can increase aggregate hours?
 Of the three, explain which is the only one that can be sustained over long periods of time.

Accepted Answer

The answer of What three factors can increase aggregate hours?
...

Question 2

Labor productivity is $20 per hour and aggregate hours are 400 billion hours.
a. What does real GDP equal?
b. Because of technological advances, labor productivity doubles to $40 per hour.Furthermore, assume that aggregate hours decrease to 300 billion hours.What does real GDP equal?

Accepted Answer

The answer of Labor productivity is $20 per hour and...

Question 3

Suppose that real GDP grows at 3 percent per year.What is the growth rate of real GDP per person if the population grows at:
a. 2 percent?
 What happens to the standard of living?
b. 3 percent?
 What happens to the standard of living?
c. 4 percent?
 What happens to the standard of living?

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Question 4

Explain the difference between the measurement of the standard of living and the measurement of labor productivity.Would you expect the growth in labor productivity to be the same as or quite different than the growth in the standard of living?

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Question 5

Real GDP equals $12 trillion and aggregate hours equals 300 billion hours.What does labor productivity equal?

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Question 6

Labor productivity is $30 per hour and aggregate hours are 165 billion hours.What does real GDP equal?

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Question 7

What are the sources of human capital?

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Question 8

A nation's population was 250 million last year and is 255 million this year.If its real GDP was $8.5 trillion last year and is $8.8 trillion this year, what is its growth rate of real GDP per person?

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Question 9

If a nation's population grows at 2 percent and its real GDP grows at 4 percent, what is the growth rate of real GDP per person?

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Question 10

Growth in the quantity of labor depends on the labor force participation rate, average hours, and the population growth rate.Explain the effect each of the three can be expected to have on the quantity of labor in the United States in the future.

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Question 11

Define labor productivity.Discuss the relationship between labor productivity, human capital growth, and technology change.

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Question 12

Of the three economic growth theories, which is the most optimistic about the chances of real GDP per person growing indefinitely?
 Which is the most pessimistic?
 What accounts for the differences?

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Question 13

$$\begin{array} { l c c } 
& \text { Real GDP } & \text { Population } \
\text { Year } & \text { (billions of 2005 dollars) } & \text { (millions of people) } \
\hline 1961 & 2,432 & 184 \
1962 & 2,578 & 186 \
\hline
\end{array}$$
-U.S.real GDP per person grew rapidly in the early 1960s.The table above has U.S.real GDP and population for 1961 and 1962.
a. What was U.S.real GDP per person in 1961?
b. What was U.S.real GDP per person in 1962?
c. Between 1961 and 1962, how rapidly did U.S.real GDP per person grow?

Accepted Answer

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&...

Question 14

During 2005, real GDP in Ireland grew 9.8 percent.If Ireland maintains this level of growth in the future, real GDP will double in approximately how many years?

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Question 15

List and explain the three factors that can increase labor productivity.

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Question 16

What is the effect on real GDP per person if labor productivity increases?
 What is the effect on the nation's standard of living?

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Question 17

Real GDP can increase either because the quantity of labor increases or because labor productivity increases.What is the effect on the standard of living if real GDP increases because
a. the quantity of labor increases?
b. labor productivity increases?

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Question 18

Suppose real GDP grows at 7 percent per year and the population grows at 2 percent per year.How many years will it take for real GDP and real GDP per person to double?

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Question 19

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

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Question 20

"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement.

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Quiz 9: Economic Growth

What three factors can increase aggregate hours? Of the three, explain which is the only one that can be sustained over long periods of time.

Labor productivity is $20 per hour and aggregate hours are 400 billion hours. a. What does real GDP equal? b. Because of technological advances, labor productivity doubles to $40 per hour.Furthermore, assume that aggregate hours decrease to 300 billion hours.What does real GDP equal?

Suppose that real GDP grows at 3 percent per year.What is the growth rate of real GDP per person if the population grows at: a. 2 percent? What happens to the standard of living? b. 3 percent? What happens to the standard of living? c. 4 percent? What happens to the standard of living?