Which of the following is NOT an important factor in establishing high growth in GDP per capita for a country?
A. a stable monetary growth rate
B. a high savings rate
C. low population growth
D. a predictable economic and political environment
E. policies to encourage industries to compete in world markets
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Which of the following policy options is likely to be most successful in getting a poor country out of the poverty trap?
A. expansionary fiscal policy
B. expansionary monetary policy
C. labor market policies
D. programs to limit population growth
E. investment subsidies
Countries can achieve continued economic growth as long as
A. technological advances continue
B. educational progress continues
C. intelligent resource management is practiced
D. all of the above
E. only A) and B)
Robert Barro's empirical findings that countries with higher levels of investment will achieve a steady state with a higher per-capita income but not with a higher growth rate supports
A. the notion of absolute convergence
B. the notion of conditional convergence
C. the predictions of the endogenous growth theory
D. the belief that a high savings rate is not beneficial for any nation
E. the belief that technology is not very important
Developed countries that direct their investment towards physical capital rather than research and development can expect to
A. have a higher level of output in the short run and a higher long-run growth rate
B. have a lower level of output in the short run and lower long-run growth rate
C. have a lower level of output in the short run but a higher long-run growth rate
D. have a higher level of output in the short run but a lower long-run growth rate
E. achieve A) but only if the level of investment exceeds 1/3 of GDP
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