Questions from Macroeconomics


Q: The following table shows real GDP per hour of work in four

The following table shows real GDP per hour of work in four imaginary countries in the years 2008 and 2018. By what percentage did labor productivity grow in each country? Is it true that productivity...

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Q: Imagine that new inventions in the computer industry affect the growth rate

Imagine that new inventions in the computer industry affect the growth rate of productivity as follows: Would such a pattern help explain U.S. productivity performance since the mid-1970s? Why?

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Q: Which of the following prices would you expect to rise rapidly over

Which of the following prices would you expect to rise rapidly over long periods of time? Why? a. Cable television rates b. Football tickets c. Internet access d. Household cleaning services e. Drivin...

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Q: Show on a graph how capital formation shifts the production function.

Show on a graph how capital formation shifts the production function. Use this graph to show that capital formation increases labor productivity. Explain in words why labor is more productive when the...

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Q: Which of the following acts constitute investment according to the economist’s definition

Which of the following acts constitute investment according to the economist’s definition of that term? a. Pfizer builds a new factory in the United States to manufacture pharmaceuticals. b. You buy 1...

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Q: From the following data, construct an expenditure schedule on a piece

From the following data, construct an expenditure schedule on a piece of graph paper. Then use the income-expenditure (45° line) diagram to determine the equilibrium level of GDP. Now suppo...

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Q: From the following data, construct an expenditure schedule on a piece

From the following data, construct an expenditure schedule on a piece of graph paper. Then use the income-expenditure (45° line) diagram to determine the equilibrium level of GDP. Compare y...

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Q: Consider an economy in which the consumption function takes the following simple

Consider an economy in which the consumption function takes the following simple algebraic form: C = 300 + 0.75DI and in which investment (I) is always $900 and net exports are always –$100. Governmen...

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Q: Keep everything the same as in Test Yourself Question 4 except change

Keep everything the same as in Test Yourself Question 4 except change investment to I = $1,100. Use the equilibrium condition Y = C + I + G + (X – IM) to find the equilibrium level of GDP on the deman...

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Q: An economy has the following consumption function: C = 200

An economy has the following consumption function: C = 200 + 0.8DI The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are $100. Investment is $600...

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