Exam 37: Structural Stagnation and Globalization

If an economy declined by 3 percent in one year, in order for the economy to return to trend growth within two years, it would have to increase at an annual rate that is

If an economy has a trade deficit, shifting the domestic SAS curve down will shift the globally-constrained potential output to the right.

The central difference between the standard theory and the structural stagnation hypothesis, when it comes to growth, is:

According to structural stagnationists, when workers lose their jobs in the tradable sector, they are pressured to:

If the structural stagnation hypothesis is true, what happened to the economy in the early 2000s that made it prone to a financial crisis?

According to the structural stagnation theory,

Which of the following industries likely will be a long-term, inherent comparative advantage for the United States?

Refer to the graph. Economic output in year 0 is $20 billion. What is potential output in year 3?

What does the structural stagnation hypothesis say about how soon the economy will return to its trend growth?

The economy recovered quickly from the 2007 recession and returned to its trend growth path.

Refer to the graph shown. According to the globalized AS/AD model, which world aggregate supply curve best represents the 2000s?

Politicians tend not to support the policy solutions to end structural stagnation, because they would:

Explain using the AS/AD model how a positive resource shock can help solve a structural stagnation problem?

Structural problems associated with globalization are no longer a concern for policy makers or economists.

Distinguish between a normal business cycle and structural stagnation.

Which of the lines represent the structural stagnation's assumption about trend growth?

The hypothesis about the macro economy that sees the recent problems of the U.S. economy directly related to the structural problems caused by globalization is referred to as the ________ hypothesis.

The primary signal to policy makers that the economy has exceeded potential output is typically:

Expansionary government policies during a period of increasing globalization:

Structural stagnation is used to describe a: