Question 1

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 2

Scenario 10-1
Consider the following data for a closed economy:
Y = $12 trillion
C = $8 trillion
I = $2 trillion
G = $2 trillion
TR = $2 trillion
T = $3 trillion
-Refer to Scenario 10-1.Based on the information above,what is the level of private saving in the economy?

Accepted Answer

A) $3 trillion 
B) $4 trillion 
C) $5 trillion 
D) $8 trillion 
A) $3 trillion 
B) $4 trillion 
C) $5 trillion 
D) $8 trillion

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Financial securities that represent promises to repay a fixed amount of funds are known as

Accepted Answer

A) bonds. 
B) stocks. 
C) pension funds. 
D) insurance premiums. 
A) bonds. 
B) stocks. 
C) pension funds. 
D) insurance premiums.

Question 5

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 6

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?

Accepted Answer

A) $5 billion 
B) $15 billion 
C) $45 billion 
D) $55 billion 
A) $5 billion 
B) $15 billion 
C) $45 billion 
D) $55 billion

Question 7

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 8

A(n)________ comes to an end with a business cycle ________.

Accepted Answer

A) recession; peak 
B) recession; trough 
C) expansion; trough 
D) expansion; bubble 
A) recession; peak 
B) recession; trough 
C) expansion; trough 
D) expansion; bubble

Question 9

Explain why the demand curve for loanable funds has a negative slope.

Accepted Answer

The demand for loanable funds reflects t

Question 10

Use the rule of 70 to illustrate how small differences in growth rates can have a large impact on how rapidly the standard of living in a country increases.

Accepted Answer

The rule of 70 refers to a calculation t

Question 11

The supply of loanable funds has a ________ slope because the greater the interest rate,the ________ the reward to saving,and the ________ the quantity of loanable funds supplied.

Accepted Answer

A) positive; lesser; lesser 
B) positive; greater; lesser 
C) negative; lesser; greater 
D) positive; greater; greater 
A) positive; lesser; lesser 
B) positive; greater; lesser 
C) negative; lesser; greater 
D) positive; greater; greater

Question 12

Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $11,000 billion.What is the rate of growth of real GDP between 2017 and 2018?

Accepted Answer

A) 1% 
B) 2% 
C) 5% 
D) 10% 
A) 1% 
B) 2% 
C) 5% 
D) 10%

Question 13

A financial intermediary's main function is to match ________ with excess funds to ________ with a shortage of funds.

Accepted Answer

A) savers; borrower 
B) borrower; savers 
C) governments; households 
D) firms; insurance companies 
A) savers; borrower 
B) borrower; savers 
C) governments; households 
D) firms; insurance companies

Question 14

For the recessions in the United States since the 1950s

Accepted Answer

A) cyclical unemployment has been non-existent. 
B) unemployment rises on average by about 1.2 percentage points during the 12 months after a recession begins. 
C) unemployment falls on average by 2 percentage points during the 12 months after a recession begins. 
D) unemployment rises on average about 5 percentage points during the 12 months after a recession begins. 
A) cyclical unemployment has been non-existent. 
B) unemployment rises on average by about 1.2 percentage points during the 12 months after a recession begins. 
C) unemployment falls on average by 2 percentage points during the 12 months after a recession begins. 
D) unemployment rises on average about 5 percentage points during the 12 months after a recession begins.

Question 15

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

Accepted Answer

A) Y - C - T. 
B) T - TR - G. 
C) Y - C - G. 
D) I - C - G. 
A) Y - C - T. 
B) T - TR - G. 
C) Y - C - G. 
D) I - C - G.

Question 16

How will an increase in the government budget surplus as a result of lower government spending (with no change in net taxes)affect private saving in the economy?

Accepted Answer

A) Private saving will increase by the amount of increase in the budget surplus. 
B) Private saving will decrease by the amount of increase in the budget surplus. 
C) Private saving will decrease by less than the amount of increase in the budget surplus. 
D) Private saving will be unaffected by the increase in the budget surplus. 
A) Private saving will increase by the amount of increase in the budget surplus. 
B) Private saving will decrease by the amount of increase in the budget surplus. 
C) Private saving will decrease by less than the amount of increase in the budget surplus. 
D) Private saving will be unaffected by the increase in the budget surplus.

Question 17

Which of the following is a true statement about the length of recessions and expansions in the United States economy?

Accepted Answer

A) Prior to 1900,the length of expansions equaled the length of recessions. 
B) Prior to 1900,the length of expansions were much less than the length of recessions. 
C) Prior to 1900,the length of expansions were much longer than the length of recessions. 
D) Prior to 1900,the length of recessions were brief and almost nonexistent. 
A) Prior to 1900,the length of expansions equaled the length of recessions. 
B) Prior to 1900,the length of expansions were much less than the length of recessions. 
C) Prior to 1900,the length of expansions were much longer than the length of recessions. 
D) Prior to 1900,the length of recessions were brief and almost nonexistent.

Question 18

Given the following economic data,what is the value of investment in a closed economy? Y = $10 trillion
C = $5 trillion
TR = $2 trillion
G = $2 trillion

Accepted Answer

A) $2 trillion 
B) $3 trillion 
C) $5 trillion 
D) cannot be determined without information on taxes (T) 
A) $2 trillion 
B) $3 trillion 
C) $5 trillion 
D) cannot be determined without information on taxes (T)

Question 19

The demand for loanable funds has a ________ slope because the lower the interest rate,the ________ number of investment projects are profitable,and the ________ the quantity of loanable funds demanded.

Accepted Answer

A) negative; greater; greater 
B) negative; greater; lesser 
C) negative; lesser; greater 
D) positive; lesser; lesser 
A) negative; greater; greater 
B) negative; greater; lesser 
C) negative; lesser; greater 
D) positive; lesser; lesser

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%

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

Scenario 10-1 Consider the following data for a closed economy: Y = $12 trillion C = $8 trillion I = $2 trillion G = $2 trillion TR = $2 trillion T = $3 trillion -Refer to Scenario 10-1.Based on the information above,what is the level of private saving in the economy?

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

Financial securities that represent promises to repay a fixed amount of funds are known as

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

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?

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?

A(n) comes to an end with a business cycle .

Explain why the demand curve for loanable funds has a negative slope.

Use the rule of 70 to illustrate how small differences in growth rates can have a large impact on how rapidly the standard of living in a country increases.

The supply of loanable funds has a slope because the greater the interest rate,the the reward to saving,and the the quantity of loanable funds supplied.

Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $11,000 billion.What is the rate of growth of real GDP between 2017 and 2018?

A financial intermediary's main function is to match with excess funds to with a shortage of funds.

For the recessions in the United States since the 1950s

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

How will an increase in the government budget surplus as a result of lower government spending (with no change in net taxes)affect private saving in the economy?

Which of the following is a true statement about the length of recessions and expansions in the United States economy?

Given the following economic data,what is the value of investment in a closed economy? Y = $10 trillion C = $5 trillion TR = $2 trillion G = $2 trillion

The demand for loanable funds has a slope because the lower the interest rate,the number of investment projects are profitable,and the the quantity of loanable funds demanded.

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

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

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

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

Scenario 10-1 Consider the following data for a closed economy: Y = $12 trillion C = $8 trillion I = $2 trillion G = $2 trillion TR = $2 trillion T = $3 trillion -Refer to Scenario 10-1.Based on the information above,what is the level of private saving in the economy?

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

Financial securities that represent promises to repay a fixed amount of funds are known as

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

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?

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?

A(n)________ comes to an end with a business cycle ________.

Explain why the demand curve for loanable funds has a negative slope.

Use the rule of 70 to illustrate how small differences in growth rates can have a large impact on how rapidly the standard of living in a country increases.

The supply of loanable funds has a ________ slope because the greater the interest rate,the ________ the reward to saving,and the ________ the quantity of loanable funds supplied.

Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $11,000 billion.What is the rate of growth of real GDP between 2017 and 2018?

A financial intermediary's main function is to match ________ with excess funds to ________ with a shortage of funds.

For the recessions in the United States since the 1950s

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

How will an increase in the government budget surplus as a result of lower government spending (with no change in net taxes)affect private saving in the economy?

Which of the following is a true statement about the length of recessions and expansions in the United States economy?

Given the following economic data,what is the value of investment in a closed economy? Y = $10 trillion C = $5 trillion TR = $2 trillion G = $2 trillion

The demand for loanable funds has a ________ slope because the lower the interest rate,the ________ number of investment projects are profitable,and the ________ the quantity of loanable funds demanded.

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

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

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

A(n) comes to an end with a business cycle .

The supply of loanable funds has a slope because the greater the interest rate,the the reward to saving,and the the quantity of loanable funds supplied.

A financial intermediary's main function is to match with excess funds to with a shortage of funds.

The demand for loanable funds has a slope because the lower the interest rate,the number of investment projects are profitable,and the the quantity of loanable funds demanded.