Test Bank For Principles of Macroeconomics Ben Bernanke 5th Edition

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

C. $0

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.

A. culture

B. full employment

C. government policy

D. capital accumulation