Question 1

Purchases of which of the following goods would be dramatically reduced during a recession?

Accepted Answer

A)  tomatoes 
B)  ink pens 
C)  gasoline 
D)  refrigerators 
A)  tomatoes 
B)  ink pens 
C)  gasoline 
D)  refrigerators

Question 2

If real GDP per capita doubles between 2005 and 2020,what is the average annual growth rate of real GDP per capita?

Accepted Answer

A)  4.7% 
B)  10.5% 
C)  15% 
D)  21% 
A)  4.7% 
B)  10.5% 
C)  15% 
D)  21%

Question 3

If technological change increases the profitability of new investment for firms,then the ________ curve for loanable funds will shift to the ________ and the equilibrium real interest rate will ________.

Accepted Answer

A)  supply; right; fall 
B)  supply; left; rise 
C)  demand; right; rise 
D)  demand; left; fall 
A)  supply; right; fall 
B)  supply; left; rise 
C)  demand; right; rise 
D)  demand; left; fall

Question 4

Which of the following statements describes the experiences of Chevron since it became independent in 1911?

Accepted Answer

A)  strong uninterrupted growth in demand 
B)  long-run growth interrupted by periods of business cycle recession 
C)  little or no growth in the long run, and unaffected by the business cycle 
D)  little or no growth in the long run, but very vulnerable to the business cycle 
A)  strong uninterrupted growth in demand 
B)  long-run growth interrupted by periods of business cycle recession 
C)  little or no growth in the long run, and unaffected by the business cycle 
D)  little or no growth in the long run, but very vulnerable to the business cycle

Question 5

If there is public dissaving,investment spending in the economy will decline,holding everything else constant.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  automobiles 
B)  food 
C)  clothing 
D)  haircuts 
A)  automobiles 
B)  food 
C)  clothing 
D)  haircuts

Question 7

If net taxes fall by $80 billion,we would expect

Accepted Answer

A)  the government deficit to fall by $80 billion. 
B)  household saving to rise by $80 billion. 
C)  household saving to rise by less than $80 billion. 
D)  household saving to fall by more than $80 billion. 
A)  the government deficit to fall by $80 billion. 
B)  household saving to rise by $80 billion. 
C)  household saving to rise by less than $80 billion. 
D)  household saving to fall by more than $80 billion.

Question 8

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

Accepted Answer

A)  increase; decrease 
B)  decrease; increase 
C)  decrease; decrease further 
D)  increase; increase further 
A)  increase; decrease 
B)  decrease; increase 
C)  decrease; decrease further 
D)  increase; increase further

Question 9

At the end of an expansion,wages of workers are usually rising faster than prices.

Accepted Answer

A) True 
 B)False

Question 10

If you invest $10,000 in a bond that earns 8% interest per year,how many years will it take to double your money?

Accepted Answer

A)  1 year and 3 months 
B)  2 years and 6 months 
C)  8 years 
D)  8 years and 9 months 
A)  1 year and 3 months 
B)  2 years and 6 months 
C)  8 years 
D)  8 years and 9 months

Question 11

Using the market for loanable funds,which of the following has the potential to raise the real interest rate?

Accepted Answer

A)  an increase in the demand for loanable funds 
B)  an increase in the quantity of loanable funds demanded 
C)  an increase in the supply of loanable funds 
D)  an increase in the quantity of loanable funds supplied 
A)  an increase in the demand for loanable funds 
B)  an increase in the quantity of loanable funds demanded 
C)  an increase in the supply of loanable funds 
D)  an increase in the quantity of loanable funds supplied

Question 12

Suppose you are a famous international economic advisor.You have been asked to asses the possibilities for growth in an African country.It is a country abundant in labor and some natural resources.The capital-to-labor ratio is low.It has a free market economy.You have found that this country does not have a very strong and healthy banking system,however the political system is stable and the government does a good job protecting property rights.Assess this country's prospects for growth.Recommend two things that would enhance the country's growth.

Accepted Answer

The prospects for this country's growth

Question 13

If real GDP grows by 3% in 2014,3.2% in 2017,and 2.5% in 2018,what is the average annual growth rate of real GDP?

Accepted Answer

A)  2.6% 
B)  2.9% 
C)  3.1% 
D)  4.2% 
A)  2.6% 
B)  2.9% 
C)  3.1% 
D)  4.2%

Question 14

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%

Question 15

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.

Accepted Answer

Start with the expression of total savin

Question 16

Typically,as an economy begins to emerge from a recessionary phase of the business cycle

Accepted Answer

A)  unemployment falls immediately. 
B)  unemployment continues to rise. 
C)  inflation begins to fall. 
D)  investment begins to fall. 
A)  unemployment falls immediately. 
B)  unemployment continues to rise. 
C)  inflation begins to fall. 
D)  investment begins to fall.

Question 17

Table 14-2
 $\begin{array}{|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Real GDP (billions of } \
2000 \text { dollars) }
\end{array} \
\hline 2015 & \$ 10,100 \
\hline 2016 & 10,950 \
\hline 2017 & 11,425 \
\hline 2018 & 11,300 \
\hline
\end{array}$
-Refer to Table 14-2.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 18

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

Accepted Answer

A)  labor productivity. 
B)  savings. 
C)  investment. 
D)  capital stock. 
A)  labor productivity. 
B)  savings. 
C)  investment. 
D)  capital stock.

Question 19

How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection,in what country would you expect to have a longer life expectancy,the United States or India? Explain.

Accepted Answer

According to Robert Fogel's research,cou

Question 20

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?

Accepted Answer

A)  3% 
B)  7% 
C)  20% 
D)  100% 
A)  3% 
B)  7% 
C)  20% 
D)  100%

Purchases of which of the following goods would be dramatically reduced during a recession?

If real GDP per capita doubles between 2005 and 2020,what is the average annual growth rate of real GDP per capita?

If technological change increases the profitability of new investment for firms,then the curve for loanable funds will shift to the and the equilibrium real interest rate will .

Which of the following statements describes the experiences of Chevron since it became independent in 1911?

If there is public dissaving,investment spending in the economy will decline,holding everything else constant.

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

If net taxes fall by $80 billion,we would expect

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

At the end of an expansion,wages of workers are usually rising faster than prices.

If you invest $10,000 in a bond that earns 8% interest per year,how many years will it take to double your money?

Using the market for loanable funds,which of the following has the potential to raise the real interest rate?

If real GDP grows by 3% in 2014,3.2% in 2017,and 2.5% in 2018,what is the average annual growth rate of real GDP?

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?

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.

Typically,as an economy begins to emerge from a recessionary phase of the business cycle

Table 14-2 Year Real GDP (billions of 2000 dollars) 2015 \ 10,100 2016 10,950 2017 11,425 2018 11,300 -Refer to Table 14-2.Using the table above,what is the approximate growth rate of real GDP from 2017 to 2018?

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

How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection,in what country would you expect to have a longer life expectancy,the United States or India? Explain.

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?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

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

Purchases of which of the following goods would be dramatically reduced during a recession?

If real GDP per capita doubles between 2005 and 2020,what is the average annual growth rate of real GDP per capita?

If technological change increases the profitability of new investment for firms,then the ________ curve for loanable funds will shift to the ________ and the equilibrium real interest rate will ________.

Which of the following statements describes the experiences of Chevron since it became independent in 1911?

If there is public dissaving,investment spending in the economy will decline,holding everything else constant.

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

If net taxes fall by $80 billion,we would expect

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

At the end of an expansion,wages of workers are usually rising faster than prices.

If you invest $10,000 in a bond that earns 8% interest per year,how many years will it take to double your money?

Using the market for loanable funds,which of the following has the potential to raise the real interest rate?

If real GDP grows by 3% in 2014,3.2% in 2017,and 2.5% in 2018,what is the average annual growth rate of real GDP?

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?

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.

Typically,as an economy begins to emerge from a recessionary phase of the business cycle

Table 14-2 Year Real GDP (billions of 2000 dollars) 2015 \ 10,100 2016 10,950 2017 11,425 2018 11,300 -Refer to Table 14-2.Using the table above,what is the approximate growth rate of real GDP from 2017 to 2018?

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

How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection,in what country would you expect to have a longer life expectancy,the United States or India? Explain.

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?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

If technological change increases the profitability of new investment for firms,then the curve for loanable funds will shift to the and the equilibrium real interest rate will .

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