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40 Cards in this Set
- Front
- Back
In the last 40 years (prior to the current recession), the most severe recession in
US was between |
1981-1982
|
|
Which one of the following variables is not included in the production function?
|
Inflation
|
|
Which one of the following nations had the highest real GDP per capita in 2000,
according to recent statistics? |
Luxembourg
|
|
In most countries, the Malthusian predictions have not been realized because
|
technology is improving
|
|
Which of the following is not one of the gains from economic growth?
|
Cheap labor force
|
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The diminishing marginal product of capital implies:
|
that additions to the capital stock produce more incremental output in poor
countries than in rich countries |
|
Between 1973-1992, labor input was the most important factor to explain growth
in: |
United States
|
|
A steady state may be defined as
|
a point at which the capital stock per worker is stabilized
|
|
The FOMC (Federal Open Market Committee) moved aggressively to change the
target federal funds rate in meetings on January 22 and January 30, 2008. Which of the following events would most likely cause the FOMC to decrease the target federal funds rate in future meetings? |
Rising unemployment and continued weakness in consumption and
investment expenditures |
|
Countries with higher initial levels of GDP per capita
|
should have lower subsequent growth rates
|
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The best long run growth strategy for developing economies is probably:
|
to increase the capital stock
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All of the following statements are true, except:
|
Recessions tend to last longer than expansions
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During the 20th century, convergence occurred most clearly
|
within OECD countries
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What is the main reason for fast growth in Asian countries after 1950?
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Huge investment rates and high capital accumulation
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In which one of the following cases we observe an increase in productivity?
|
If capital stock increases at a faster rate than labor supply
|
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Which statement is true when thinking of the European countries in the last 30
years? |
Central Bank kept increasing interest rates
|
|
Which of the following is not included in Institutions:
|
Years of schooling
|
|
According to the “Too much productivity?” article, which of the following is a
potential cost of faster productivity growth? |
More job loss
|
|
A boom phase in the economy is typically accompanied by:
|
increases in macroeconomic variables such as consumption and investment
|
|
Developed economies need to engage in research and development more than do
developing economies because developed economies |
have largely exhausted the gains from capital accumulation
|
|
The production function of a country relates
|
the capital and labor input to the output.
|
|
The difference between real GDP and the trend real GDP is the:
|
cyclical part of real GDP
|
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World growth data shows that from 1960 to 2000:
|
a) the US and other OECD countries grew at moderate rates.
b) sub-Saharan African countries grew at low rates or declined. c) some countries particularly East Asian countries grew rapidly. d) All of the above |
|
What is the difference between Real GDP and Nominal GDP?
|
Real GDP is adjusted for inflation
|
|
Some variables that can cause differences in growth rates of income per capita or
levels of income per capita among countries are: |
a) Measures of human capital
b) Market distortions c) Geography d) All of the above |
|
Economic growth differs from business cycles in that
|
economic growth is a long run phenomenon; business cycles are short term
|
|
The 2000-2002 recession of the US economy hit the hardest:
|
The technology sector
|
|
The 1997-2006 housing boom/bubble in the US history was driven by all of the
following except: |
Expectations of permanent home price depreciation
|
|
The period known as the Great Moderation in US is characterized by:
|
Low output volatility and Low Inflation rates
|
|
Convergence refers to:
|
poorer countries growing more rapidly than rich countries
|
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The semi-official arbiter of when US recessions begin and end is:
|
the National Bureau of Economic Research
|
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Which of the following is not an element of total factor productivity?
|
hours worked by the labor force
|
|
The observation that poorer nations grow more rapidly than richer ones if they
share the same steady state, and more slowly if they don’t, is known as |
conditional convergence
|
|
The additional output produced by adding one extra unit of capital to the
production |
the marginal product of capital
|
|
Which of the following variables typically moves in the opposite direction from
real GDP? |
the unemployment rate
|
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Which of the following gained the most from technological advances in the 1950-1990 period?
|
Developed OECD nations
|
|
Which one of the following statements regarding the Federal Reserve Bank is not
accurate: |
used only expansionary policies in the last 10 years
|
|
According to the “Economic Growth in the European Union” which of the
following statements correctly describes the relationship between the level of GDP per capita and economic growth? |
a) High GDP per capita implies a high growth rate of GDP per capita.
b) Low GDP per capita implies a low growth rate of GDP per capita. c) Slow productivity growth implies that GDP per capita will decrease. d) None of these statements are correct. |
|
A large negative output gap
|
implies excessive unemployment
|
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According to the Solow growth model, rich countries:
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tend to grow slower than poor ones
|