Exam 21: Economic Growth, the Financial System, and Business Cycles

If, between 2008 and 2018, the economy's real GDP grew from $20 billion to $40 billion, what was the average annual growth rate in the economy?

An increase in the real interest rate results in which of the following?

Countries with high rates of economic growth tend to have

From 1950 - 2007, recessions in the United States

Potential GDP was estimated to grow at a rate of 3.2% from 1949-2017 in the United States. Actual GDP in the U.S.

Potential GDP is always greater than real GDP in an economy.

An increase in the real interest rate will decrease consumption and investment.

Workers in high-income countries have ________ to work with than do workers in low-income countries.

If an economy is growing at a rate of 2.5% per year, how long will it take the economy to double in size?

Which of the following financial securities is most liquid?

If taxes are less than transfers plus government spending, then

The U.S. federal government has experienced dramatic swings in the state of its budget over the past 20 years.

A period of economic expansion ends with a business cycle trough.

Actual real GDP will be above potential GDP if

Table 21-1 -Refer to Table 21-1. Using the table above, what is the approximate average annual growth rate from 2015 to 2018?

Most economists believe that the return of ________ during the 2007-2009 recession is a key reason why the recession was so severe.

There is public dissaving if

In a closed economy, private saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)

During the expansion phase of the business cycle

The federal budget deficit can be reduced by