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

Increases in capital per hour worked cannot sustain high rates of economic growth unless accompanied by technological change.

Economist Robert Fogel has estimated that by the year 2040,individuals in the United States will be spending

Since 1950,expansions in the United States have become ________,while recessions have become ________.

The Congressional Budget Office reported that federal budget deficits in the United States were likely to increase during the next decade,and due to these higher deficits,"the nation's capital stock ultimately would be smaller,and productivity and income would be lower than would be the case if the debt was smaller." This higher budget deficit could crowd out business investment if it resulted in an increase in interest rates.Crowding out of business investment would be represented graphically by a

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

Most economists believe that the return of ________ during the 2007-2009 recession is a key reason why the recession was so severe.

If real GDP per capita measured in 2009 dollars was $6,000 in 1950 and $48,000 in 2018,we would say that in 2018,the average American could buy ________ times as many goods and services as the average American in 1950.

If government saving is negative,then

Outline the various actions the government sector could take to promote growth.

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

If an economy is growing at a rate of 2.5% per year,how long will it take the economy to double in size?

If labor productivity growth slows down in a country,this will

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. Source: Lucia Mutikani, "U.S. productivity rises in second quarter, keeps labor costs in check," reuters.com, August 9, 2017. -Refer to the Article Summary.A slowdown in the growth rate of labor productivity,as occurred from 2007-2016,will likely result in

According to the "Rule of 70," it will take 4 years for real GDP per capita to double when the growth rate of real GDP per capita is

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

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

The U.S.federal government has experienced dramatic swings in the state of its budget over the past 20 years.

Borrowers are ________ of loanable funds,and lenders are ________ of loanable funds.

Figure 14-6 -Refer to Figure 14-6.The market is in equilibrium.If the government budget deficit rises,which of the following would you expect to see?

India's rapid growth can be explained by