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

If, between 2010 and 2020, the economy's real GDP grew from $20 billion to $40 billion, what was the average annual growth rate in the economy?

Potential GDP is estimated to grow at a rate of 2% in Canada.Actual GDP in Canada

The period between a business cycle peak and a business cycle trough is called

Because Bombardier produces expensive durable goods, the demand for their goods

Human capital refers to which of the following?

________ officially decides when a recession begins and ends.

Between 1980 and 2016, the average length of recessions in Canada was

Potential GDP refers to

Countries without well-developed financial systems are able to sustain high levels of economic growth.

In a closed economy, public saving plus private saving is equal to

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

The sum of public and private saving in an economy is equal to

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

Which of the following does not describe governmental policy actions that are helpful in supporting growth in an economy? Governmental policies that

In an open economy, the relationship between GDP (Y)and expenditures is Y = C + I + G.

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

As the economy nears the end of a recession, which of the following do we typically see?

The demand for loanable funds is downward sloping because the ________ the interest rate, the ________ the number of profitable investment projects a firm can undertake, and the ________ the quantity demanded of loanable funds.

Private saving is defined as

Figure 6.6 Alt text for Figure 6.6: In figure 6.6, a graph shows loanable funds market in equilibrium. Long description for Figure 6.6: The x-axis is labelled, quantity of loanable funds (millions of dollars), ranging from 0 to 180 in increments of 30.The y-axis is labelled real interest rate, ranging from 0 to 6% in increments of 1.2 intersecting lines are shown.A line labelled D begins at the top left corner and slopes down toward the end of the x-axis.Another line labelled S begins near the origin and slopes upward to the top right corner.5 points are plotted on these two lines as (90, 5), (90, 3), (120, 4), (150, 5), (150, 3).These points are connected to their respective coordinates on the x-axis and y-axis using dotted lines. -Refer to Figure 6.6.The loanable funds market is in equilibrium, as shown in the figure above.As a result of an increase in the government budget deficit, the ________ for loanable funds will ________, thereby ________ the equilibrium real interest rate and ________ the equilibrium quantity of loanable funds.