Exam 14: Economic Growth, the Financial System, and Business Cycles

The total amount of physical capital available in a country is know as the country's

During the expansion phase of the business cycle

Explain why the demand curve for loanable funds has a negative slope.

The demand for durable goods

Inflation tends to ________ during the expansion phase of the business cycle and ________ during the recession phase of the business cycle.

Which of the following goods would see the largest decline in demand during a recession?

According to the National Bureau of Economic Research,the United States experienced ________ recessions since 1950.

Using equations for public and private saving,show that saving must equal investment in a closed economy.Begin with the expression for total saving in the economy.

An increase in the government budget surplus will shift the ________ curve for loanable funds to the ________ and the equilibrium real interest rate will ________.

Article Summary According to the Office for National Statistics in the United Kingdom, productivity in the UK in 2012 was well below the average of the G7 countries, only faring better than Japan. The G7 is a group of the seven most industrialized countries, and includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Compared to the G7 average, the UK was 16% less productive per hour worked, and output was 19% worse when measured on a per worker basis. The productivity gap was the largest for the UK since 1994. Worker productivity has increased in all of the G7 nations except for the UK since 2007, where it has fallen by two percentage points. The most productive workers were in the United States, where workers were 29 percentage points more productive per hour worked than in the UK. -Refer to the Article Summary.Unlike in the UK,labor productivity in the other G7 nations has increased since 2007.An increase in labor productivity

If GDP grows at a rate of 3% per year,approximately how long will it take for GDP to double in size?

What is the main difference between a consumption tax and an income tax?

An increase in government purchases,ceteris paribus,will

Explain why a centrally planned economy might not grow as rapidly as a market economy.

What factors increase potential GDP? Include a definition of potential GDP in your answer.

A recession begins with a(n)________ in spending by firms on capital goods and a(n)________ in spending on durable goods by households.

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