Macro Final Exam Questions With
Complete Questions
If real GDP increases from $5 billion to $5.25 billion and the population increases
from 2 million to 2.02 million, real GDP per person increases by ______ percent.
4.0
If the population growth rate is 2 percent, real GDP per person will double in 7
years if real GDP grows by ______ percent per year.
12All of the following increase labor productivity except ______.
All of the following increase labor productivity except ______.
an increase in consumption
The increase in real GDP per hour of labor that results from an increase in capital
per hour of labor ______.
is larger at a small quantity of capital than at a large quantity of capital
The increase in real GDP per hour of labor that results from an advance in
technology makes labor ______ productive ______.
more; at all quantities of capital
The classical growth theory is that real GDP per person ______.
only temporarily rises and then returns to the subsistence level
In new growth theory, the source of economic growth is ______.
the persistent want for a higher standard of living
An economy can achieve faster economic growth without ______.
an increase in the population growth rate
Saving and investment in new capital ______ the amount of capital per worker
and ______ labor productivity
increase; increase
Diminishing returns arise because if the quantity of capital is small, an increase
in capital brings a ________ increase in production; and if the quantity of capital
is large, an increase in capital brings a ________ increase in production.
, large; small
Advances in technology _______ labor productivity and _______ the diminishing
returns to capital.
increase; do not eliminate
Financial capital is the _______.
money used to buy physical capital
If the price of a U.S. government bond is $50 and the owner of the bond is entitled
to $2.50 income each year, then the interest rate on the bond is _______.
5 percent
In the loanable funds market, an increase in _______.
expected profit increases the demand for loanable funds
The supply of loanable funds increases _______.
when disposable income increases or wealth decreases
An increase in expected profit _______ the real interest rate and _______ the
quantity of loanable funds.
increases; increases
A government budget surplus _______.
increases the supply of loanable funds
Crowding out occurs when _______.
the government budget is in deficit and the real interest rate rises
An increase in the government budget deficit _______.
increases private saving and decreases investment
Read the news clip, then answer the following question:
"G-20 leaders look to shake off lingering economic troubles
For the world economy to emerge stronger from the global financial crisis,
experts say that savings by the United States, investment by Japan, and
consumption by China will all have to increase."
The experts' advice would ______ loanable funds in the United States and ______
loanable funds in Japan.
Complete Questions
If real GDP increases from $5 billion to $5.25 billion and the population increases
from 2 million to 2.02 million, real GDP per person increases by ______ percent.
4.0
If the population growth rate is 2 percent, real GDP per person will double in 7
years if real GDP grows by ______ percent per year.
12All of the following increase labor productivity except ______.
All of the following increase labor productivity except ______.
an increase in consumption
The increase in real GDP per hour of labor that results from an increase in capital
per hour of labor ______.
is larger at a small quantity of capital than at a large quantity of capital
The increase in real GDP per hour of labor that results from an advance in
technology makes labor ______ productive ______.
more; at all quantities of capital
The classical growth theory is that real GDP per person ______.
only temporarily rises and then returns to the subsistence level
In new growth theory, the source of economic growth is ______.
the persistent want for a higher standard of living
An economy can achieve faster economic growth without ______.
an increase in the population growth rate
Saving and investment in new capital ______ the amount of capital per worker
and ______ labor productivity
increase; increase
Diminishing returns arise because if the quantity of capital is small, an increase
in capital brings a ________ increase in production; and if the quantity of capital
is large, an increase in capital brings a ________ increase in production.
, large; small
Advances in technology _______ labor productivity and _______ the diminishing
returns to capital.
increase; do not eliminate
Financial capital is the _______.
money used to buy physical capital
If the price of a U.S. government bond is $50 and the owner of the bond is entitled
to $2.50 income each year, then the interest rate on the bond is _______.
5 percent
In the loanable funds market, an increase in _______.
expected profit increases the demand for loanable funds
The supply of loanable funds increases _______.
when disposable income increases or wealth decreases
An increase in expected profit _______ the real interest rate and _______ the
quantity of loanable funds.
increases; increases
A government budget surplus _______.
increases the supply of loanable funds
Crowding out occurs when _______.
the government budget is in deficit and the real interest rate rises
An increase in the government budget deficit _______.
increases private saving and decreases investment
Read the news clip, then answer the following question:
"G-20 leaders look to shake off lingering economic troubles
For the world economy to emerge stronger from the global financial crisis,
experts say that savings by the United States, investment by Japan, and
consumption by China will all have to increase."
The experts' advice would ______ loanable funds in the United States and ______
loanable funds in Japan.
