Test Bank For Principles of Macroeconomics Ben Bernanke 5th Edition
Chapter 15 Testbank
1. All other things being equal, an increase in a country’s total factor productivity will:
A. increase a country’s steady-state level of income per capita
B. increase a country’s steady-state level of income and saving per capita
C. increase a country’s steady-state level of income, saving and replacement investment per capita
D. increase a country’s saving rate
2. In a closed economy, suppose that consumption is $100 billion, saving is $30 billion and taxes paid total $20 billion. What is GDP?
A. $70 billion
B. $150 billion
C. $110 billion
D. $130 billion
3. Suppose that an economy has saving equal to $300 billion, taxes equal to $200 billion and government spending equal to $300 billion. What is investment equal to in this economy (assuming that the economy is closed)?
A. –$100 billion
B. $100 billion
D. $200 billion
4. Which of the following describes the relationship between saving and investment for a closed economy?
A. S = (Y – T) – C
B. S = Y – C
C. S = I
D. S + (T – G) = I
5. The neo-classical growth model emphasises the role of ____________ to explain countries’ growth experience.
B. full employment
C. government policy
D. capital accumulation
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