Question 1

How can the federal budget deficit affect the level of economic growth in the long run?

Accepted Answer

Two determinants of economic growth are ...

Question 2

Refer to Figure 17.3.Assume X units of plants and equipment wear out each year.What will happen to the PPC in the future if the economy currently produces at a point near V?

Accepted Answer

A)  It will stay the same.
B)  It will shift outward.
C)  It will shift inward.
D)  This cannot be determined with the information given.

Question 3

The base period is a year

Accepted Answer

A)  From which the latest data is available.
B)  From which data were first collected.
C)  Used for comparing the data for other years.
D)  In which a series of data reaches an extreme (high or low) point.

Question 4

Table 17.1   Year  Real GDP  Population 1$575 billion 22 million 2$580 billion 24 million 3$605 billion 25 million 4$606 billion 27 million \begin{array}{|c|c|c|}\hline 	ext { Year } & 	ext { Real GDP } & 	ext { Population } \\hline 1 & \$ 575 	ext { billion } & 22 	ext { million } \\hline 2 & \$ 580 	ext { billion } & 24 	ext { million } \\hline 3 & \$ 605 	ext { billion } & 25 	ext { million } \\hline 4 & \$ 606 	ext { billion } & 27 	ext { million } \\hline\end{array} Year 1234​ Real GDP $575 billion $580 billion $605 billion $606 billion ​ Population 22 million 24 million 25 million 27 million ​​

Refer to Table 17.1.GDP per capita was the

Accepted Answer

A)  Smallest in year 2.
B)  Smallest in year 3.
C)  Smallest in year 4.
D)  Same each year.

Question 5

One possible constraint to limitless growth is

Accepted Answer

A)  Irreversible environmental damage.
B)  A limited supply of arable land.
C)  A capital stock that grows too quickly.
D)  The fact that technological advance cannot go on forever.

Question 6

If the average worker's productivity is $12 per hour and the labor force is employed for 600 billion hours,GDP is equal to

Accepted Answer

A)  $7.2 trillion.
B)  $50 billion.
C)  $588 billion.
D)  $612 billion.

Question 7

Refer to Figure 17.2.Ceteris paribus,if the economy produces at point C,which of the following is most likely?

Accepted Answer

A)  The economy will continue to have point C as a choice in the future.
B)  The PPC will shift outward in the future.
C)  The PPC will not shift in the future.
D)  The PPC will shift inward in the future.

Question 8

The percentage change in real GDP from one period to another is called

Accepted Answer

A)  Real GDP.
B)  Nominal GDP.
C)  The growth rate.
D)  GDP per capita.

Question 9

Refer to Figure 17.2.Assume the economy is at point E and is constrained by the PPC shown.This economy

Accepted Answer

A)  Can experience a movement to full employment by moving to point A.
B)  Can experience long-run growth by moving to point D.
C)  Can experience long-run growth by moving to point C.
D)  Cannot experience growth because it is constrained by the PPC.

Question 10

Improvements in output per worker

Accepted Answer

A)  Depend only on increases in the quantity of capital equipment.
B)  Depend only on increases in the quality of capital equipment.
C)  Depend in large part on increases in the quality of capital equipment and the quantity of capital equipment per worker.
D)  Do not depend on increases in the quantity of capital equipment or the quality of capital equipment.

Question 11

Refer to Figure 17.3.Assume X units of plants and equipment wear out each year.What will happen to the PPC in the future if the economy currently produces at point Z?

Accepted Answer

A)  It will stay the same.
B)  It will shift outward.
C)  It will shift inward.
D)  This cannot be determined with the information given.

Question 12

A short-run increase in capacity utilization

Accepted Answer

A)  Shifts the production possibilities curve rightward.
B)  Shifts the production possibilities curve leftward.
C)  Moves the economy to a point closer to its existing production possibilities curve.
D)  Moves the economy upward to the left along its existing production possibilities curve.

Question 13

Additional capital makes its best contribution to economic growth by

Accepted Answer

A)  Replacing labor.
B)  Enhancing labor productivity.
C)  Allowing service industries to replace manufacturing industries as primary employers.
D)  Giving savers more money to put into investment.

Question 14

Which of the following will accelerate long-run economic growth?

Accepted Answer

A)  Crowding out.
B)  Tax credits for new investments.
C)  Elimination of government-subsidized college loans.
D)  Elimination of infrastructure development.

Question 15

The real GDP refers to the value of final output produced in a given period,adjusted for

Accepted Answer

A)  No prices.
B)  Final prices.
C)  Fixed prices.
D)  Changing prices.

Question 16

If a country moves from a point below the production possibilities curve to a point on the curve,it is experiencing

Accepted Answer

A)  Increased capacity utilization.
B)  Expanded capacity.
C)  Long-run growth.
D)  Economic growth.

Question 17

If lower profits in foreign countries result in decreased investment from foreign countries into the United States,continued investment growth from saving will have to rely more on

Accepted Answer

A)  U.S.household saving.
B)  Local government saving from deficit spending.
C)  Federal government saving from deficit spending.
D)  Stock market investment.

Question 18

1 to LRAS2 would most likely result from A) An increase in government spending. B) An increase in labor skills. C) A decrease in transfer payments. D) An increase in the money supply." class="answers-bank-image d-inline" rel="preload" > According to Figure 17.7,a shift in the long-run aggregate supply from LRAS1 to LRAS2 would most likely result from

Accepted Answer

A)  An increase in government spending.
B)  An increase in labor skills.
C)  A decrease in transfer payments.
D)  An increase in the money supply.

Question 19

The Bush 2001 tax package included both short-term fiscal stimulus and incentives to encourage long-term savings.

Accepted Answer

A) True 
 B)False

Question 20

Is it possible for GDP to increase but for the standard of living to decrease? Explain.

Accepted Answer

Yes.The standard of living can be measur...

Exam 17: Growth and Productivity: Long-Run Possibilities

The Bush 2001 tax package included both short-term fiscal stimulus and incentives to encourage long-term savings.

Correct Answer
verified

If a country moves from a point below the production possibilities curve to a point on the curve,it is experiencing

Correct Answer
verified

Refer to Figure 17.3.Assume X units of plants and equipment wear out each year.What will happen to the PPC in the future if the economy currently produces at a point near V?

Correct Answer
verified

The real GDP refers to the value of final output produced in a given period,adjusted for

Correct Answer
verified

One possible constraint to limitless growth is

Correct Answer
verified

Correct Answer
verified

Refer to Figure 17.3.Assume X units of plants and equipment wear out each year.What will happen to the PPC in the future if the economy currently produces at point Z?

Correct Answer
verified

Improvements in output per worker

Correct Answer
verified

If lower profits in foreign countries result in decreased investment from foreign countries into the United States,continued investment growth from saving will have to rely more on

Correct Answer
verified

Is it possible for GDP to increase but for the standard of living to decrease? Explain.

Correct Answer
verified
Yes.The standard of living can be measur...
View Answer

If the average worker's productivity is $12 per hour and the labor force is employed for 600 billion hours,GDP is equal to

Correct Answer
verified

How can the federal budget deficit affect the level of economic growth in the long run?

Correct Answer
verified
Two determinants of economic growth are ...
View Answer

According to Figure 17.7,a shift in the long-run aggregate supply from LRAS₁ to LRAS₂ would most likely result from

Correct Answer
verified

A short-run increase in capacity utilization

Correct Answer
verified

Refer to Figure 17.2.Assume the economy is at point E and is constrained by the PPC shown.This economy

Correct Answer
verified

The base period is a year

Correct Answer
verified

Additional capital makes its best contribution to economic growth by

Correct Answer
verified

Refer to Figure 17.2.Ceteris paribus,if the economy produces at point C,which of the following is most likely?

Correct Answer
verified

The percentage change in real GDP from one period to another is called

Correct Answer
verified

Which of the following will accelerate long-run economic growth?

Correct Answer
verified

Exam 17: Growth and Productivity: Long-Run Possibilities

The Bush 2001 tax package included both short-term fiscal stimulus and incentives to encourage long-term savings.

Correct AnswerverifiedShow Answer

If a country moves from a point below the production possibilities curve to a point on the curve,it is experiencing

Correct AnswerverifiedShow Answer

Refer to Figure 17.3.Assume X units of plants and equipment wear out each year.What will happen to the PPC in the future if the economy currently produces at a point near V?

Correct AnswerverifiedShow Answer

The real GDP refers to the value of final output produced in a given period,adjusted for

Correct AnswerverifiedShow Answer

One possible constraint to limitless growth is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Refer to Figure 17.3.Assume X units of plants and equipment wear out each year.What will happen to the PPC in the future if the economy currently produces at point Z?

Correct AnswerverifiedShow Answer

Improvements in output per worker

Correct AnswerverifiedShow Answer

If lower profits in foreign countries result in decreased investment from foreign countries into the United States,continued investment growth from saving will have to rely more on

Correct AnswerverifiedShow Answer

Is it possible for GDP to increase but for the standard of living to decrease? Explain.

Correct AnswerverifiedYes.The standard of living can be measur...View AnswerShow Answer

If the average worker's productivity is $12 per hour and the labor force is employed for 600 billion hours,GDP is equal to

Correct AnswerverifiedShow Answer

How can the federal budget deficit affect the level of economic growth in the long run?

Correct AnswerverifiedTwo determinants of economic growth are ...View AnswerShow Answer

According to Figure 17.7,a shift in the long-run aggregate supply from LRAS1 to LRAS2 would most likely result from

Correct AnswerverifiedShow Answer

A short-run increase in capacity utilization

Correct AnswerverifiedShow Answer

Refer to Figure 17.2.Assume the economy is at point E and is constrained by the PPC shown.This economy

Correct AnswerverifiedShow Answer

The base period is a year

Correct AnswerverifiedShow Answer

Additional capital makes its best contribution to economic growth by

Correct AnswerverifiedShow Answer

Refer to Figure 17.2.Ceteris paribus,if the economy produces at point C,which of the following is most likely?

Correct AnswerverifiedShow Answer

The percentage change in real GDP from one period to another is called

Correct AnswerverifiedShow Answer

Which of the following will accelerate long-run economic growth?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Yes.The standard of living can be measur...
View Answer

Correct Answer
verified

Correct Answer
verified
Two determinants of economic growth are ...
View Answer

According to Figure 17.7,a shift in the long-run aggregate supply from LRAS₁ to LRAS₂ would most likely result from

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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