Exam 11: Economic Growth: Why Is the Economic Road so Bumpy

Which group is responsible for announcing the dates for each phase of a U.S.business cycle?

The most commonly used tool to forecast future changes in economic activity is the

Investments in capital goods increase an economy's ability to produce consumer goods in the futurE.

Why does spending on capital tend to increase economic growth more than spending of consumption goods? Because

Economic growth compounds over timE.

The average annual rate of growth for the U.S.economy during the twentieth century was between 3% and 3.5%.

Which of the following is responsible for officially tracking the Index of Leading Economic Indicators?

What is technology?

Economists consider economic growth as a short-run process.

Economic growth is an important social issue,but it is not related to other problems such as unemployment and poverty.

Close examination of the recent history of real GDP in the U.S.reveals that the rate of economic growth has been diminishing over timE.

In recent years,capital has grown at a slower rate than the labor force within the U.S.economy.

Relative to the past,business cycles in the U.S.are becoming

Even small differences in growth rates can result in significant gaps in GDP between two countries over the long run.

Which theories concerning the business cycle focus on factors outside of the economy?

What do you call business cycle theories based on the belief that economic activity follows general trends of optimism and pessimism?

The Following Questions Refer to the graph below. -A peak in the business cycle is illustrated on the graph

Economists have agreed upon one widely accepted theory to explain business cycle behavior.

A reduction in savings will lead to a reduction in the level of investment.

Economic growth is necessary to create new jobs,increase incomes,and raise standards of living.