Question 1

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

Accepted Answer

A)  planned economy. 
B)  market economy. 
C)  open economy. 
D)  closed economy. 
A)  planned economy. 
B)  market economy. 
C)  open economy. 
D)  closed economy.

Question 2

During the expansion phase of the business cycle, which of the following eventually increases?

Accepted Answer

A)  production 
B)  employment 
C)  income 
D)  all of the above 
A)  production 
B)  employment 
C)  income 
D)  all of the above

Question 3

The demand for durable goods

Accepted Answer

A)  has decreased over time. 
B)  declines by a greater percentage than does GDP during a recession. 
C)  declines by a smaller percentage than does GDP during a recession. 
D)  rises by a greater percentage than does GDP during a recession. 
A)  has decreased over time. 
B)  declines by a greater percentage than does GDP during a recession. 
C)  declines by a smaller percentage than does GDP during a recession. 
D)  rises by a greater percentage than does GDP during a recession.

Question 4

Growth in potential GDP in the United States from 1949 to 2017 was estimated to be about

Accepted Answer

A)  8.25% per year. 
B)  5.0% per year. 
C)  3.2% per year. 
D)  1.5% per year. 
A)  8.25% per year. 
B)  5.0% per year. 
C)  3.2% per year. 
D)  1.5% per year.

Question 5

Since 1950, the average length of a recession in the United States has been

Accepted Answer

A)  such that recessions barely exist. 
B)  less than a year. 
C)  between 1 and 2 years. 
D)  greater than 2 years. 
A)  such that recessions barely exist. 
B)  less than a year. 
C)  between 1 and 2 years. 
D)  greater than 2 years.

Question 6

Explain and show graphically how a decrease in household saving affects the equilibrium interest rate and the equilibrium quantity of loanable funds.

Accepted Answer

A decrease in household saving decreases

Question 7

Explain how unemployment changes over the business cycle. Why do these changes occur?

Accepted Answer

Unemployment will fall during an expansi

Question 8

Table 21-2
  
-Refer to Table 21-2. Using the table above, what is the approximate growth rate of real GDP from 2017 to 2018?

Accepted Answer

A)  -2% 
B)  -1% 
C)  1% 
D)  2% 
A)  -2% 
B)  -1% 
C)  1% 
D)  2%

Question 9

In a closed economy, which of the following components of GDP is not included?

Accepted Answer

A)  investment 
B)  government spending 
C)  net exports 
D)  consumption 
A)  investment 
B)  government spending 
C)  net exports 
D)  consumption

Question 10

Article Summary
According to the  U.S. Department of Labor, nonfarm labor productivity rose at an annualized rate of 0.9 percent in the second quarter of 2017 as hours worked and output per worker both rose at their fastest pace in 18 months.  Compared to the same quarter in 2016, productivity increased at a rate of 1.2 percent, its best performance in two years., while unit labor costs fell at a rate of 0.2 percent. From 2007 to 2016, labor productivity increased at an average annual rate of 1.2 percent, well below its long-term growth rate of 2.1 percent from 1947 to 2016.  This is an indication of a decline in the potential growth rate, blamed in part on a shortage of workers and low capital expenditure.

-Refer to the Article Summary. In the second quarter of 2017, labor productivity in the United States rose at its fastest pace in 18 months. Labor productivity is important for an economy because an increase in labor productivity

Accepted Answer

A)  will increase the labor force participation rate. 
B)  allows the average consumer to increase consumption. 
C)  will create short-run, but not long-run, economic growth. 
D)  will increase output and decrease wages in the long run. 
A)  will increase the labor force participation rate. 
B)  allows the average consumer to increase consumption. 
C)  will create short-run, but not long-run, economic growth. 
D)  will increase output and decrease wages in the long run.

Question 11

Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $9,500 billion. What is the rate of growth of real GDP between 2017 and 2018?

Accepted Answer

A)  -10% 
B)  -5% 
C)  -2% 
D)  -1% 
A)  -10% 
B)  -5% 
C)  -2% 
D)  -1%

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

During the expansion phase of the business cycle, which of the following eventually increases?

The demand for durable goods

Growth in potential GDP in the United States from 1949 to 2017 was estimated to be about

Since 1950, the average length of a recession in the United States has been

Explain and show graphically how a decrease in household saving affects the equilibrium interest rate and the equilibrium quantity of loanable funds.

Explain how unemployment changes over the business cycle. Why do these changes occur?

Table 21-2 -Refer to Table 21-2. Using the table above, what is the approximate growth rate of real GDP from 2017 to 2018?

In a closed economy, which of the following components of GDP is not included?

Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $9,500 billion. What is the rate of growth of real GDP between 2017 and 2018?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

During the expansion phase of the business cycle, which of the following eventually increases?

The demand for durable goods

Growth in potential GDP in the United States from 1949 to 2017 was estimated to be about

Since 1950, the average length of a recession in the United States has been

Explain and show graphically how a decrease in household saving affects the equilibrium interest rate and the equilibrium quantity of loanable funds.

Explain how unemployment changes over the business cycle. Why do these changes occur?

Table 21-2 -Refer to Table 21-2. Using the table above, what is the approximate growth rate of real GDP from 2017 to 2018?

In a closed economy, which of the following components of GDP is not included?

Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $9,500 billion. What is the rate of growth of real GDP between 2017 and 2018?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters