Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781337091985
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 7, Problem 4CQQ
To determine
Diminishing returns of capital and growth.
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Students have asked these similar questions
In the long run, capital deepening,
a. doesn't change the level of productivity or income.
b. raises the levels of both productivity and income.
c. Raises the level of productivity but not the level of income.
d. raises the level of Income but not the level of productivity
If a country's saving rate increases, what happens in the long run?
a.
Productivity increases.
b.
Real GDP per person decreases.
c.
Productivity does not change.
d.
Real GDP per person does not change.
Which of the following statements is most accurate about advanced economies?
A. Economies experience a positive growth trend over the short run but experience significant variability in the long run.
B. Economies experience a positive growth trend over the long run but experience significant variability in the short run.
C. Economies experience positive and stable growth over both the long run and short run.
D. Economies experience little long-run growth in output but can experience significant growth in the short run.
Chapter 7 Solutions
Brief Principles of Macroeconomics (MindTap Course List)
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- When production in an economy grows more quickly than the population in that economy, which of the following must be occurring? A. Incomes are growing at a slower rate than the population. B. Real GDP is falling. C. Real GDP per capita is constant. D. Real GDP per capita is rising. E. Living standards are falling. QUESTION 18 If immigration laws become more strict and many foreign citizens are not allowed to work and are forced to leave the United States, A. there is a movement down along the aggregate supply curve. B. the potential GDP curve will shift to the right. C. the aggregate demand curve will shift to the left. D. there is a movement up along the aggregate supply curve. E. the potential GDP curve will shift to the lefarrow_forwardThe long-run effects of an increase in the saving rate include...? a. a higher level of productivity. b. a higher growth rate of productivity. c. a higher growth rate of income. d. All of the above are correct.arrow_forwardA policy that increases saving a. will worsen economic growth, but improve health outcomes. b. will worsen economic growth and health outcomes. c. will improve economic growth, but worsen health outcomes. d. will improve economic growth and health outcomes.arrow_forward
- What is the likely effect of increasing public investment in higher education on a country's long-term economic growth? A. It will lead to a decrease in economic growth due to higher taxes. B. It will have no effect on economic growth. C. It will lead to higher long-term economic growth due to an improved labor force. D. It will initially boost economic growth but lead to a decline in the long run.arrow_forwardd. Suppose that society decided to reduce consumption and increase investment.i. How would this change affect economic growth? ii. What groups in society would benefit from this change? iii. What groups might be hurt?arrow_forwardHow does increasing the level of public education spending typically affect the long- term economic growth of a country? A. It has no effect on long-term economic growth. B. It reduces long-term economic growth due to higher taxes. C. It increases long-term economic growth by improving the workforce's skills and knowledge. D. It initially boosts economic growth but leads to a decline in productivity over time.arrow_forward
- Answer the below d. Suppose that society decided to reduce consumption and increase investment.i. How would this change affect economic growth? ii. What groups in society would benefit from this change? iii. What groups might be hurt?arrow_forward1. Japan’s real GDP was 525 trillion yen in 2009 and 535 trillion yen in 2010. Japan’s population was 127.6 million in 2009 and 127.5 million in 2010. Calculate a. The economic growth rate. b. The growth rate of real GDP per person. c. The approximate number of years it takes for real GDP per person in Japan to double if the real GDP economic growth rate returns to 3 percent a year and the population growth rate is maintained.arrow_forwardOther things the same, people in the U.S. would want to save more if the real interest rate in the U.S. a. fell. The increased saving would increase the quantity of loanable funds demanded.b. fell. The increased saving would increase the quantity of loanable funds supplied.c. rose. The increased saving would increase the quantity of loanable funds demanded.d. rose. The increased saving would increase the quantity of loanable funds supplied.arrow_forward
- K The new growth theory argues that A. improvements in technology are not so important in determining economic growth because there are almost no productivity gains left in the economy. O B. for new technology to positively affect economic growth, the benefits from R&D activity must all accrue to the country that performs the R&D. OC. technology must be considered a separate factor of production that is sensitive to economic incentives. OD. economic growth is determined by technology, but growth in technology is unrelated to economic incentives.arrow_forward9. Which of the following will cause an increase in the level of output per worker in the long run? A. an increase in the saving rate B. a reduction in the depreciation rate C. an increase in the stock of human capital D. all of the abovearrow_forwardEconomic growth. Two key sources of economic growth have been due to increases in resources and increases in productivity. a. Please explain 5 factors that might contribute to falling U.S. GDP growth rates. b. Explain in detail, what we could do to avoid each of those 5 factors causing our GDP growth rates to fall. c. Please explain 5 factors that might contribute to rising U.S. GDP growth rates. d.Explain in detail, what we could do to cause each of the 5 factors to happen and cause our GDP growth rate to increase.arrow_forward
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