Question 1

If real GDP per capita doubles between 2005 and 2020,what is the average annual growth rate of real GDP per capita?

Accepted Answer

A) 4.7% 
B) 10.5% 
C) 15% 
D) 21% 
A) 4.7% 
B) 10.5% 
C) 15% 
D) 21%

Question 2

Which of the following is a true statement about the length of recessions and expansions in the United States economy?

Accepted Answer

A) After 1950,the length of expansions equaled the length of recessions. 
B) After 1950,the length of expansions were much less than the length of recessions. 
C) After 1950,the length of expansions were much longer than the length of recessions. 
D) After 1950,the length of expansions were brief and almost nonexistent. 
A) After 1950,the length of expansions equaled the length of recessions. 
B) After 1950,the length of expansions were much less than the length of recessions. 
C) After 1950,the length of expansions were much longer than the length of recessions. 
D) After 1950,the length of expansions were brief and almost nonexistent.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

What is the name of the organization that defines business cycle peaks and troughs in the United States?

Accepted Answer

A) the Bureau of Labor Statistics 
B) the Federal Reserve 
C) the National Bureau of Economic Research 
D) the National Peak and Trough Committee 
A) the Bureau of Labor Statistics 
B) the Federal Reserve 
C) the National Bureau of Economic Research 
D) the National Peak and Trough Committee

Question 5

Workers in high-income countries have ________ to work with than do workers in low-income countries.

Accepted Answer

A) less physical capital 
B) more physical capital 
C) more labor 
D) more labor and less physical capital 
A) less physical capital 
B) more physical capital 
C) more labor 
D) more labor and less physical capital

Question 6

Suppose that real GDP for 2012 was $10,000 billion and real GDP for 2013 was $9,500 billion.What is the rate of growth of real GDP between 2012 and 2013?

Accepted Answer

A) -10% 
B) -5% 
C) -2% 
D) -1% 
A) -10% 
B) -5% 
C) -2% 
D) -1%

Question 7

Increases in real GDP since 1900 can actually underestimate growth in the standard of living for Americans since 1900 because

Accepted Answer

A) the level of pollution in 1900 was much higher than it is today. 
B) the crime rate was higher in 1900 than it is today. 
C) goods and services are more expensive today as compared to 1900. 
D) the quality of health care that exists today was not available in 1900. 
A) the level of pollution in 1900 was much higher than it is today. 
B) the crime rate was higher in 1900 than it is today. 
C) goods and services are more expensive today as compared to 1900. 
D) the quality of health care that exists today was not available in 1900.

Question 8

If technological change increases the profitability of new investments for firms,then the ________ curve for loanable funds will shift to the ________.

Accepted Answer

A) supply; right 
B) supply; left 
C) demand; right 
D) demand; left 
A) supply; right 
B) supply; left 
C) demand; right 
D) demand; left

Question 9

Potential GDP is defined as

Accepted Answer

A) the maximum of GDP that the economy can produce. 
B) the amount of GDP produced if there is no frictional unemployment. 
C) the level of GDP attained when all firms are producing at capacity. 
D) the amount of GDP produced if there is no structural unemployment. 
A) the maximum of GDP that the economy can produce. 
B) the amount of GDP produced if there is no frictional unemployment. 
C) the level of GDP attained when all firms are producing at capacity. 
D) the amount of GDP produced if there is no structural unemployment.

Question 10

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.

Accepted Answer

A) A to B 
B) B to A 
C) B to C 
D) C to A 
A) A to B 
B) B to A 
C) B to C 
D) C to A

Question 11

Which of the following is an example of human capital?

Accepted Answer

A) a computer 
B) a factory building 
C) a college education 
D) a software program 
A) a computer 
B) a factory building 
C) a college education 
D) a software program

Question 12

The NBER's Business Cycle Dating Committee defines a recession as at least two consecutive quarters of falling real GDP.

Accepted Answer

A) True 
 B)False

Question 13

If,as economist Alwyn Young has suggested,high growth rates in Singapore are not a result of technological progress,how are growth rates in Singapore expected to change over time?

Accepted Answer

A) Without technological progress,the high growth rates cannot be sustained. 
B) As long as the labor force participation rate is rising,growth can still continue,despite a lack of technological progress. 
C) As long as the amount of capital per hour worked continues to expand,the growth rate in Singapore will continue to rise at an increasing rate. 
D) Agricultural workers will continue to expand their productivity,thereby allowing Singapore to achieve growth rates above those of higher-income countries. 
A) Without technological progress,the high growth rates cannot be sustained. 
B) As long as the labor force participation rate is rising,growth can still continue,despite a lack of technological progress. 
C) As long as the amount of capital per hour worked continues to expand,the growth rate in Singapore will continue to rise at an increasing rate. 
D) Agricultural workers will continue to expand their productivity,thereby allowing Singapore to achieve growth rates above those of higher-income countries.

Question 14

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

Accepted Answer

A) 11 months. 
B) two years. 
C) three months. 
D) eighteen months. 
A) 11 months. 
B) two years. 
C) three months. 
D) eighteen months.

Question 15

Figure 10-2  
-Refer to Figure 10-2.Which of the following is consistent with the graph depicted above?

Accepted Answer

A) An expected expansion increases the profitability of new investment. 
B) The government runs a budget surplus. 
C) There is a shift from an income tax to a consumption tax. 
D) New government regulations decrease the profitability of new investment. 
A) An expected expansion increases the profitability of new investment. 
B) The government runs a budget surplus. 
C) There is a shift from an income tax to a consumption tax. 
D) New government regulations decrease the profitability of new investment.

Question 16

How are unemployment,inflation,and the business cycle related?

Accepted Answer

A recessionary phase of a business cycle

Question 17

Explain what happens to inflation during the business cycle.Give an intuitive explanation as to why inflation changes the way it does over the business cycle.

Accepted Answer

Inflation will rise during an expansion

Question 18

From 1991 until 2001,the United States was in a period of

Accepted Answer

A) expansion. 
B) recession. 
C) business cycle troughs. 
D) business cycle peaks. 
A) expansion. 
B) recession. 
C) business cycle troughs. 
D) business cycle peaks.

Question 19

A firm can fund an expansion of its operations by

Accepted Answer

A) issuing bonds. 
B) buying stock. 
C) paying dividends. 
D) loaning money. 
A) issuing bonds. 
B) buying stock. 
C) paying dividends. 
D) loaning money.

Question 20

Inflation tends to ________ during the expansion phase of the business cycle and ________ during the recession phase of the business cycle.

Accepted Answer

A) increase; decrease 
B) decrease; increase 
C) decrease; decrease further 
D) increase; increase further 
A) increase; decrease 
B) decrease; increase 
C) decrease; decrease further 
D) increase; increase further

If real GDP per capita doubles between 2005 and 2020,what is the average annual growth rate of real GDP per capita?

Which of the following is a true statement about the length of recessions and expansions in the United States economy?

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

What is the name of the organization that defines business cycle peaks and troughs in the United States?

Workers in high-income countries have ________ to work with than do workers in low-income countries.

Suppose that real GDP for 2012 was $10,000 billion and real GDP for 2013 was $9,500 billion.What is the rate of growth of real GDP between 2012 and 2013?

Increases in real GDP since 1900 can actually underestimate growth in the standard of living for Americans since 1900 because

If technological change increases the profitability of new investments for firms,then the curve for loanable funds will shift to the .

Potential GDP is defined as

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.

Which of the following is an example of human capital?

The NBER's Business Cycle Dating Committee defines a recession as at least two consecutive quarters of falling real GDP.

If,as economist Alwyn Young has suggested,high growth rates in Singapore are not a result of technological progress,how are growth rates in Singapore expected to change over time?

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

Figure 10-2 -Refer to Figure 10-2.Which of the following is consistent with the graph depicted above?

How are unemployment,inflation,and the business cycle related?

Explain what happens to inflation during the business cycle.Give an intuitive explanation as to why inflation changes the way it does over the business cycle.

From 1991 until 2001,the United States was in a period of

A firm can fund an expansion of its operations by

Inflation tends to during the expansion phase of the business cycle and during the recession phase of the business cycle.

Economics: Foundations and Models

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

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

If real GDP per capita doubles between 2005 and 2020,what is the average annual growth rate of real GDP per capita?

Which of the following is a true statement about the length of recessions and expansions in the United States economy?

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

What is the name of the organization that defines business cycle peaks and troughs in the United States?

Workers in high-income countries have ________ to work with than do workers in low-income countries.

Suppose that real GDP for 2012 was $10,000 billion and real GDP for 2013 was $9,500 billion.What is the rate of growth of real GDP between 2012 and 2013?

Increases in real GDP since 1900 can actually underestimate growth in the standard of living for Americans since 1900 because

If technological change increases the profitability of new investments for firms,then the ________ curve for loanable funds will shift to the ________.

Potential GDP is defined as

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.

Which of the following is an example of human capital?

The NBER's Business Cycle Dating Committee defines a recession as at least two consecutive quarters of falling real GDP.

If,as economist Alwyn Young has suggested,high growth rates in Singapore are not a result of technological progress,how are growth rates in Singapore expected to change over time?

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

Figure 10-2 -Refer to Figure 10-2.Which of the following is consistent with the graph depicted above?

How are unemployment,inflation,and the business cycle related?

Explain what happens to inflation during the business cycle.Give an intuitive explanation as to why inflation changes the way it does over the business cycle.

From 1991 until 2001,the United States was in a period of

A firm can fund an expansion of its operations by

Inflation tends to ________ during the expansion phase of the business cycle and ________ during the recession phase of the business cycle.

Economics: Foundations and Models

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

If technological change increases the profitability of new investments for firms,then the curve for loanable funds will shift to the .

Inflation tends to during the expansion phase of the business cycle and during the recession phase of the business cycle.