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

During an expansion,how do inflation and unemployment typically change?

Since 1900,real GDP per capita has ________ and this measure ________ the actual growth in standards of living in the United States over this time.

Using the market for loanable funds,which of the following has the potential to raise the real interest rate?

Which of the following will increase the real interest rate?

Equilibrium in the loanable funds market determines

For the recessions in the United States since the 1950s

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

Figure 10-3 -Refer to Figure 10-3.Which of the following is consistent with the graph depicted above?

The federal budget deficit can be reduced by

Which one of the following is not considered a financial intermediary?

Since 1950,expansions in the United States have become ________,while recessions have become ________.

Since 1950

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

Figure 10-5 -Refer to Figure 10-5."Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above.

Purchases of which of the following goods would be dramatically reduced during a recession?

Which of the following would you expect to increase the equilibrium interest rate?

Inflation usually increases during a recession and decreases during an expansion.

The lengths of the recession and expansion phases and which sectors of the economy are most affected will rarely be the same in any two business cycles.

According to the "Rule of 70," how many years will it take for real GDP per capita to double when the growth rate of real GDP per capita is 5%?

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