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

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

There is public dissaving if

Centrally planned economies tend to grow more quickly than market economies.

If labor productivity growth slows down in a country,this means that the growth rate in ________ has declined.

Figure 14-6 -Refer to Figure 14-6.The loanable funds market is given in the figure above.If the current real interest rate is 5 percent,which of the following is true?

Explain and show graphically how a decrease in government spending affects the equilibrium interest rate and equilibrium quantity of loanable funds in the market for loanable funds.

When the economy enters a recessionary phase of the business cycle,unemployment tends to

Figure 14-4 -Refer to Figure 14-4.Which of the following is consistent with the graph depicted?

Financial securities that represent promises to repay a fixed amount of funds are known as

The rule of 70 states that

The effect of a recession on a company like General Motors Corporation is such that