Econ Growth Theory 20 Question MC IMPORTANT

Question 1

One of the problems with comparing real GDP over time is that some products exist today that did not exist in the past. And some products that existing in the past do not exist today. Why does this create a problem for calculating real GDP over time?

Question 2

Across countries, the relationship of GDP per capita and the number of children per woman is _____?

Question 3

Calculate the Fisher ratio of real GDP in 2009 relative to 2004 using the data shown in the Test 1 section of the study guide. Give your answer to 2 decimal places.

Question 4

Calculate the Fisher ratio of real GDP in 2009 relative to 2002 using the data shown in the Test 1 section of the study guide. Give your answer to 2 decimal places.

Question 5

GDP was 100 in 2011. If GDP had an annualized growth rate of 0.046 between 2011 and 2031, then what was the level of GDP in 2,026? Use 1 decimal place.

Question 6

If the amount consumed of all goods is higher in 2019 than in 2018, then real GDP is higher in 2019 than in 2018, regardless of what happens to the relative price of the goods.

True

False

Question 7

In 1970 people purchased some number of Chevy Novas, but zero Tesla Model S cars. In 2019, they purchased zero Chevy Novas, but some number of Tesla Model S’s. You are making a real GDP comparison of 2019 to 1970, using 1970 prices. If you assume the price of a Tesla is infinity in 1970, the the ratio of real GDP in 2019 to 1970 is:

Question 8

In Australia they consume some Vegamite, but consume no Bud Light. In the US, they consume Bud Light, but no Vegamite. You are trying to compute the ratio of real GDP in the US to real GDP in Australia, using US prices. If you use a price of zero for Vegamite, then what is the ratio of real GDP in the US to Australia?

Question 9

In Australia they consume some Vegamite, but consume no Bud Light. In the US, they consume Bud Light, but no Vegamite. You are trying to compute the ratio of real GDP in the US to real GDP in Australia, using Australia’s prices. If you use a price of zero for Bud Light, then what is the ratio of real GDP in the US to Australia?

Question 10

In any given year, there are differences in the growth rate of GDP per capita across the set of developed countries with log GDP per capita above 8.5. Those differences in the growth rate will tend to be:

Question 11

For a developed country on a balanced growth path, which of the following is implied by the data found in the study guide?

Question 12

Calculate the annualized growth rate of GDP per capita in Germany from 1989 to 2009 using data from the study guide. Put your answer in decimal form and round to 3 decimal places.

Question 13

Calculate the annualized growth rate of GDP per capita in United States from 1952 to 1962 using data from the study guide. Put your answer in decimal form and round to 3 decimal places.

Question 14

If the capital stock is 52.2, the rate of return on capital is 0.06, the wage is 1.12, the number of workers is 3, and profits are 5, then what is the share of labor in GDP (compensation/GDP)? Use 3 decimal places.

Question 17

Look at the figure for Log GDP per capita on the Test 1 page of the Study Guide. Which of the three economies shown appear to be on a balanced growth path?

Question 18

Look at the figure for gross capital formation share of GDP on the Test 1 page of the Study Guide. Which of the three economies appears to be on a balanced growth path?

Question 19

Look at the four figures on the Test 1 page of the Study Guide, and specifically consider economy B. Does economy B meet the four conditions defining a balanced growth path?

Yes

No

Question 20

Which of the following characteristics are part of the definition of a balanced growth path?