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Test Bank chapter 10 Macroeconomics 6e Blanchard╱Johnson
Macroeconomics, 6e (Blanchard/Johnson)
Chapter 10: The Facts of Growth
10.1 Multiple Choice Questions
1) Of the following, the most often used measure of changing living standards is
A) the growth rate of nominal GDP.
B) the growth rate of real GDP.
C) the growth rate of nominal GDP per capita.
D) the growth rate of real GDP per capita.
E) unemployment per capita.
Answer: D
Diff: 1
2) Over the last hundred years,
A) movements in output due to recessions and recoveries dominate the movement caused by long-run growth.
B) output has decreased in as many years as it has increased.
C) U.S. output has approximately doubled.
D) all of the above
E) none of the above
Answer: E
Diff: 1
3) Suppose individuals wish to obtain the most accurate comparison of living standards between the Canada and Saudi Arabia. To do so, one would convert Saudi Arabian output into dollars using
A) the current nominal exchange rate.
B) the current real exchange rate.
C) the prior years real exchange rate.
D) an average of the last five years exchange rates.
E) purchasing power parity methods.
Answer: E
Diff: 1
4) Using current exchange rates, the U.S. standard of living is ranked
A) higher than it would be under the purchasing power parity method.
B) lower than it would be under the purchasing power parity method.
C) number one in the world.
D) among the lowest in the world.
E) none of the above
Answer: B
Diff: 1
5) If output per capita grows by a constant 6% per year, then the standard of living would grow by about ________ over 3 years.
A) 12%
B) 17%
C) 18%
D) 19%
E) 20%
Answer: D
Diff: 1
6) Which of the following is a main conclusion about growth for OECD countries and the four rich countries examined in the chapter?
A) there has been a large increase in the standard of living since 1950.
B) the growth rates have decreased since the mid-1970s.
C) there has been a convergence of output per capita since 1950.
D) all of the above
E) none of the above
Answer: D
Diff: 1
7) Which of the fol
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