Exam 6: Economic Growth, The Financial System, and Business Cycles

China has enjoyed a rate of economic growth near 7% a year for the last several years. Based on this growth rate the Chinese economy will double in size every ________ years.

If taxes are less than transfers plus government spending, then

Which of the following will result in an increase in labour productivity?

What is "human capital," and how does human capital affect labour productivity and economic growth?

If, in a closed economy, real GDP is $30 billion, consumption is $20 billion, and government purchases are $5 billion, what is total saving in the economy?

There is a federal budget deficit when

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

Which of the following financial securities is most liquid?

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

Which of the following increases labour productivity?

During a recession, spending on ________ tends to fall more dramatically than spending on ________.

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

Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy?

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

For the recessions in Canada since the 1980s,

________ depend on increases in labour productivity.

If you spend more of your income on consumption goods, which of the following will occur?

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.

The Canadian economy has been more stable since 1995.

An increase in government purchases, ceteris paribus, will