ECON 402 Exam 1 || with 100% Error-free Solutions.
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Course
ECON 402
Institution
ECON 402
If capital grows at 2 percent per year and labor grows at 1 percent per year, and capital's share is 1/3 while labor's share is 2/3, if there is no technological progress and the neoclassical assumptions hold, the growth rate of output will be: correct answers 4/3 percent per year
Over the past ...
ECON 402 Exam 1 || with 100% Error-free Solutions.
If capital grows at 2 percent per year and labor grows at 1 percent per year, and capital's share is
1/3 while labor's share is 2/3, if there is no technological progress and the neoclassical
assumptions hold, the growth rate of output will be: correct answers 4/3 percent per year
Over the past 50 years in the United States: correct answers output per worker, the real wage,
and the capital stock per worker have all increased at the same rate, whereas the real rental price
of capital has remained about the same.
Assume that General Motors hires more workers to produce more cars. GDP in-creases unless:
correct answers (a) cars are sold to households in the US.(b) cars cannot be sold and are stored.
(c) cars are exported to China.(d) none of the above.
According to the definition used by the U.S. Bureau of Labor Statistics, a person is out of the
labor force if she: correct answers is studying full time.
Assume the production function is Yt = At Kαt L1−αt . If output grows at 2 percent per year,
capital grows at 1 percent per year, labor grows at 1 percent per year, the labor share is 2/3 and
the capital share is 1/3, then the Total Factor Productivity (TFP): correct answers grows at 1
percent per year
According to the Solow model, in a steady-state economy with population growthand
technological progress: correct answers persistent increases in standards of living are possible
because the capital stock grows faster than the population.
According to the Solow model, differences in savings rates can account for international
differences in: correct answers the stock of capital per person.
Real Wage correct answers W/P
Nominal GDP in year t correct answers Price * Quantity in year t
Real GDP in year t + 1 correct answers Price in year t * Quantity in year t + 1
GDP Deflator correct answers Nominal GDP / Real GDP
Laspeyres correct answers (Q * Pt+1)/(Q * P)
GDP correct answers GDP = C (consumption spending )+ I(investment Spending) +
G(Government Spending) + NX (X-IM)
What's left out of GDP correct answers Illegal / Black-market output
· Domestic Labor
· Work done "under the table"
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