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

The Congressional Budget Office reported that federal budget deficits in the United States were likely to increase during the next decade,and due to these higher deficits,"the nation's capital stock ultimately would be smaller,and productivity and income would be lower than would be the case if the debt was smaller." This higher budget deficit would be represented graphically by

How have government policies and programs affected the volatility of the business cycle in the United States since 1950? Explain and provide at least two specific examples of policies or programs that may have had an impact.

Consider the following data for a closed economy: a.Y = $12 trillion b.C = $8 trillion c.I = $3 trillion d.TR = $2 trillion e.T = $3 trillion Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.

Which of the following will not occur as the result of a decrease in net taxes?

Economic growth depends more on technological change than on increases on capital per hour worked.

If GDP grew 3% in 1970,2.2% in 1971 and 2.5% in 1972 then,what is the average annual growth rate over this period?

Which of the following statements describes the experiences of Chevron since it became independent in 1911?

In terms of economic growth,the key measure of the standard of living is

Which of the following is a correct statement?

Use the equations for public and private saving to demonstrate how total saving in the economy equals investment.

Increases in capital per hour worked cannot sustain high rates of economic growth unless accompanied by technological change.

The best measure of the standard of living is

The U.S.federal government has experienced dramatic swings in the state of its budget over the past 20 years.

What two factors are the keys to determining labor productivity?

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.In the second quarter of 2017,labor productivity in the United States rose at its fastest pace in 18 months.Labor productivity is important for an economy because an increase in labor productivity

Explain and show graphically how government deficits can "crowd out" private investment.

If labor productivity growth slows down in a country,this means that the growth rate in ________ has declined.

Under which of the following circumstances would the government be running a deficit?

________ are financial securities that represent promises to repay a fixed amount of funds.

Outline the various actions the government sector could take to promote growth.