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

Which of the following will result in an increase in labor productivity?

Cutting costs at the beginning of a recession tends to make the most sense for a business that produces or provides

Which of the following explains why fluctuations in real GDP have become less volatile in the United States since 1950?

If the CPI is currently 202,what does this tell you about inflation between last year and this year?

In an open economy,the country interacts with other economies through both trading of goods and services and borrowing and lending.

Since 1900,real GDP in the United States has grown

When the economy enters a recessionary phase of the business cycle,unemployment tends to

One difference between stocks and bonds is that

At the end of an expansion,wages of workers are usually rising faster than prices.

Borrowers are ________ of loanable funds,and lenders are ________ of loanable funds.

Potential GDP is always greater than real GDP in an economy.

When the government runs a deficit,which of the following is true?

Market economies tend to grow more quickly than centrally-planned economies.

Since 1950,the average length of a recession in the United States has been

Figure 10-6 -Refer to Figure 10-6.The market is in equilibrium.If the government budget deficit rises,which of the following would you expect to see?

If Ebenezer Scrooge spends rather than saves his vast wealth,he will

A good measure of the standard of living is

The response of investment spending to an increase in the government budget deficit is called

Which of the following will increase investment spending in the economy,holding everything else constant?

Explain and show graphically how a decrease in household saving affects the equilibrium interest rate and the equilibrium quantity of loanable funds.