Exam 10: Economic Growth, the Financial System, and Business Cycles

The NBER's Business Cycle Dating Committee defines a recession as at least two consecutive quarters of falling real GDP.

In comparison to a government that runs a balanced budget,when the government runs a budget deficit

In the United States,the average length of expansions from 1950 to 2009 was more than twice as long than they were from 1900 to 1950.

An increase in the demand for loanable funds will occur if there is

Give three reasons why the U.S.economy was more stable from 1950-2007 than it was prior to 1950.

Explain and show graphically how an increase in government spending affects the equilibrium interest rate in the market for loanable funds.

Increases in real GDP since 1900 can actually underestimate growth in the standard of living for Americans since 1900 because

Which of the following would encourage economic growth through increases in the capital stock?

What factors increase potential GDP? Include a definition of potential GDP in your answer.

In a closed economy,which of the following components of GDP is not included?

Which of the following statements about the budget deficit is true?

Article Summary 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

In a closed economy,which of the following equations reflects investment? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

As the economy nears the end of an expansion,which of the following do we typically see?

The Business Cycle Dating Committee,a part of the ________,officially decides when a recession begins and ends.

Which of the following would increase public saving?

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

Figure 10-6 -Refer to Figure 10-6.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?

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

What is labor productivity? How does a country's standard of living relate to labor productivity?