Exam 10: Economic Growth, the Financial System, and Business Cycles

For the recessions in the United States since the 1950s,

Explain why increasing the government budget deficit can decrease investment spending.

Which of the following will increase the real interest rate?

As the economy nears the end of an expansion,interest rates usually ________ and wages raise more ________ than prices.

Which of the following is most likely to be able to sustain economic growth in an economy?

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

Recessions cause the unemployment rate to ________ and the inflation rate to ________.

A financial intermediary's main function is to match ________ with excess funds to ________ with a shortage of funds.

Labor productivity will increase if the ________ increases and ________.

Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?

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

Retained earnings are sufficient to finance a firm's rapid expansion in a high-growth economy.

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

Figure 21-1 -Refer to Figure 21-1.The market is in equilibrium.If the government budget deficit rises,which of the following would you expect to see?

Since 1950,recessions in the United States

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

In a closed economy,what is the relationship between saving and investment?

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

Economic growth depends more on technological change than on increases on capital per hour worked.

Labor productivity is