Chapter 10: pls help

Question 1 (1 point) Consider long-run economic growth in the contest of the Neoclassical Growth model with physical capital and labour. If physical capital increases by 5%%, and there is no change in technology, population or the labour force, then: a Heal COP will decrease and real GDP per capita will increase. O b) Real GDP will increase, and real GDP per capita will increase. O c) Real GDP will increase and real GDP per capital will decrease. O d) Real GDP will decrease and real GDP per capita will decrease. O r Real GDP will increase and real GUUP per capita will remain constant. Question 2 (1 point) In the Next aical growth model, the law of diminishing marginal returns implies that capital accumulation loath to over O A larger levels of unemployment but small increases in the standard of living. HI smaller increases in COP and average living standards. 4 larger increases in GOP but smaller decreases in living standarth. O D) barger decreases in GDP and large decreases in living standarth. OH barger levels of unemployment but larger increases in the standard of living. Question 3 (1 point) The table briow shows aggregate values for a hypothetical economy Suppose this economy has real GIV equal to potential output. Potential GOP $14 OQL Government urchases $220 mutment Consumption $11 500 EVETUES $2006 TABLE 25-9 Refer to Table 25-3. What is the level of private saving for this economy? OA sad O HI $2000 O $ $100 O D) 4500 OH) $3000 Question 4 (1 point) government policies are to be successful in enhancing a country's lory -run growth rate, they likely work through generating O Al an increase in current consumption and a reduction in saving. OH] greater investment in physical and human capital. 4fiscal policies that shift the AD curve to the right. O ) higher levels of current consumption. OH , leftward shift in the AS curve. Question S (1 point) The "new" theories of economic growth emphasize that the pace of technological change is _ to economic signals, and that it is_ _ _ to the economic O A responsive; endogenous OHI resporives Exogenous O C) unresponsive; Exogenous B unresponsive; unrelated Question 6 (1 point) Consider the model of long-run savings, investment and interest rates. What would be the long-run effect of a decrease in desired consumption? O al A decrease in the interest rate and an increase in the equilibrium quantity of investment. () b) An increase in the interest rate and a decrease in the equilibrium quantity of investment. : An increase in the interest rate and the equilibrium quantity of investment. O ) A decrease in the interest rate and the equilibrium quantity of investment. Question 7 (1 point) In Neoclassical growth theory, an increase in the labour force _ -. total output and -. total output per person. OA IncIEmeg increases OHI leaves constant; reduces O C) leaves constant; leaves caratant OW increaseS; reducEs B) increases; leaves constantQuestion 8 1 point) Compared to Neoclassical growth theory, newer "endogenous growth" theories are _. regarding the prospect of continuous increases in the standard of Irving, due in part to its emphasis on the A aptimatic; accelerating depletion of natural resources HI pessimistic; increasing birth rates as a result of higher real income per capita 3 4 pramimatic; accelerating depletion of natural resources ") penimistic; endopencity of technological change O B) optimistic; endogeneity of technological change Question 9 (1 point) Why is real GUP not a good measure of average material living standards? A) Because it is biased by the changes in the inflation rate. HI Because it is sensitive to the base year chosen in its calculation. O C) Because it does not take into account the size of the population. Op) Because the price level may be changing, which affects what people can afford to buy E) Because it excludes the role of imported goods. Question 10 (1 point) Consider the long -run theory of investment, swing, and growth. For a given leved off mailurul income, a decrease in private consumption or government purchases will caune the equilibrium interest rate to Al decreme and the flow of national saving to increase. HI increase and the flow of investment to increase. Circusme and the flow of national saving to decrease. OUJ decrease and the flow of national saving to decrease. O E) increase and the flow of investment to decrease. Question 11 (1 point) Which of the following is a common measure of a country's level of productivity? O A the capital-output ratio HI output per capita 4) output per unit of labour input OW) percapita GOP O E) the average efficiency of capital Question 12 (1 point) In Neoclassical growth theory, if the capital stock is growing, but the population and labour force and growing faster, then this will lead to .. -.... in total output and . in total output per person. Al no change ; reductions OHI incremer; increases OR no change; leaves constant O El increases; reductions