1.

a)Assume that technological progress does not occur. Which of the following variables will not change when the economy reaches steady-state equilibrium?

Select one:

a. output per worker

b. investment per worker

c. capital per worker

d. All of the above.

e. Only B and C.

b)The rate of growth of output per worker in Australia between 1950 and 2004 was approximately equal to which of the following?

Select one:

a. 1.8%

b. 5.3%

c. 6.3%

d. 1.3%

c) Given the narrow interpretation of technology, technology will include which of the following?

Select one:

a. the organization and sophistication of markets

b. how well firms are run

c. the political environment

d. None of the above.

d) For this question, assume that the expected rate of inflation is a function of past inflation. Also assume that the unemployment rate has been equal to the natural rate of unemployment for some time. Given this information, we know that:

Select one:

a. the rate of inflation will approximately be zero.

b. the rate of inflation should steadily decrease over time.

c. the rate of inflation should neither increase nor decrease.

d. the rate of inflation should steadily increase over time.

e. the rate of inflation should approximately equal to the natural rate of unemployment.