Research Inputs vs Research Productivity Quiz

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What did Solow find intriguing about the decline in productivity growth?

The presence of the computer age but not reflected in productivity statistics (correct)

The overstatement of growth in Y t

The lack of technological innovations

The underestimation of difficulties in measuring TFP

Which technological advancements are mentioned in the text as contributing to the decline in productivity growth?

Televisions and radios

Typewriters and fax machines

AI and Machine Learning (correct)

Printers and scanners

What is one of the possible explanations given in the text for the productivity slowdown?

The understatement of growth in Y t (correct)

The overestimation of difficulties in measuring TFP

The accurate measurement of Y t

The easy measurement of K t & Lt

Why is measuring Y t highlighted in the text as particularly challenging?

Y t represents total factor productivity (TFP) Signup and view all the answers

In what way does the text suggest that recent innovations may have exacerbated difficulties associated with measuring TFP?

By introducing challenges in measuring Y t, K t, and Lt Signup and view all the answers

What does the Romer Model of Economic Growth emphasize in terms of technology?

It allows for technology as an endogenous process Signup and view all the answers

How does the Romer Model view Total Factor Productivity (TFP)?

As an endogenous variable Signup and view all the answers

What distinguishes ideas from objects in the context of The Economics of Ideas?

Ideas are potentially infinite, while objects are bound by resource constraints Signup and view all the answers

What is one implication of nonrivalry on Returns to Scale, as discussed in the text?

Increasing returns to scale in production Signup and view all the answers

How does increasing the number of objects and stock of ideas affect production, based on the replication argument?

Production increases by more than 2-fold Signup and view all the answers

In the context of the Romer Model, how does it view the replication argument with respect to ideas and objects?

Doubling the quantity of objects leads to more than double production due to nonrival ideas Signup and view all the answers

What determines the price level in the Real Business Cycle (RBC) model?

Quantity of money in the economy Signup and view all the answers

In the new Keynesian model, what introduces nominal rigidities?

Market power of firms Signup and view all the answers

Why do firms in the new Keynesian model face real costs when changing their prices?

Imperfect information Signup and view all the answers

What is the impact of imperfect information on firms in the new Keynesian model?

Difficulty in setting optimal prices Signup and view all the answers

Which factor influences how much firms change their prices in the new Keynesian model?

Inflation rate expectations Signup and view all the answers

How does perfect competition impact price determination in the Real Business Cycle (RBC) model?

'Prices are fully flexible' Signup and view all the answers

What is the main criticism of the RBC model regarding technology shocks?

It is unclear what the underlying tech shocks really are Signup and view all the answers

How does a positive shock to factor supplies impact labor supply according to the text?

Increases labor supply as substitution effect dominates income effect Signup and view all the answers

Why does consumption increase less than output after a positive shock to factor supplies?

Households aim to smooth consumption Signup and view all the answers

What happens to the incentives to save when the rental rate of capital (r) increases?

Incentives to save increase Signup and view all the answers

Why does the shock propagate over time according to the text?

Higher savings lead to higher MP Lt +1 Signup and view all the answers

What does the model predict incorrectly about the co-movement between output and certain variables?

Overstates the magnitude of co-movement between output and all variables Signup and view all the answers

What is the key factor that leads to a decline in research productivity according to the text?

Having a declining number of fixed workers Signup and view all the answers

How is research productivity calculated based on the text?

( ) ∆ A t+ 1 At z= L at Signup and view all the answers

How does the text describe the productivity of researchers in comparison to the 1930s?

Researchers are much less productive Signup and view all the answers

What is the role of effective number of researchers in determining research productivity according to the text?

It directly affects research productivity Signup and view all the answers

Why does the text suggest looking at micro data instead of aggregate data when analyzing research productivity?

Micro data provides more accurate information Signup and view all the answers

What is one of the caveats mentioned in the text regarding calculating research productivity?

Measuring inputs accurately Signup and view all the answers