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

When potential GDP increases,is it necessarily the case that real GDP increases as well? Explain.

Explain and show graphically how a decrease in government spending affects the equilibrium interest rate and equilibrium quantity of loanable funds in the market for loanable funds.

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

________ are financial securities that represent partial ownership of a firm.

Between 1950 and 2009,the average length of recessions in the United States was

If taxes are less than transfers plus government spending,then

An increase in public saving has what impact on the market for loanable funds?

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

Which of the following explains why employment only rises at a slow pace at the end of a recession?

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.

Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?

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

Labor productivity is

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

Retained earnings are always sufficient to finance a firm's rapid expansion in a high-growth economy.

Economists have not found a way to predict when recessions will begin and end.

Potential GDP is defined as

The budget deficit is defined as

Purchases of Huggies diapers should

Countries with high rates of economic growth tend to have