Question 1

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

Accepted Answer

A) Prior to 1900,the length of expansions equaled the length of recessions. 
B) Prior to 1900,the length of expansions were much less than the length of recessions. 
C) Prior to 1900,the length of expansions were much longer than the length of recessions. 
D) Prior to 1900,the length of recessions were brief and almost nonexistent. 
A) Prior to 1900,the length of expansions equaled the length of recessions. 
B) Prior to 1900,the length of expansions were much less than the length of recessions. 
C) Prior to 1900,the length of expansions were much longer than the length of recessions. 
D) Prior to 1900,the length of recessions were brief and almost nonexistent.

Question 2

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

Accepted Answer

A) an increase in the demand for loanable funds 
B) an increase in the quantity of loanable funds demanded 
C) an increase in the supply of loanable funds 
D) an increase in the quantity of loanable funds supplied 
A) an increase in the demand for loanable funds 
B) an increase in the quantity of loanable funds demanded 
C) an increase in the supply of loanable funds 
D) an increase in the quantity of loanable funds supplied

Question 3

Which of the following is a correct statement?

Accepted Answer

A) Inflation is measured as the percent change in the CPI. 
B) The CPI is a widely used measure of the inflation rate. 
C) Real GDP is our best measure of economic growth. 
D) The PPI measures inflation as experienced by producers. 
A) Inflation is measured as the percent change in the CPI. 
B) The CPI is a widely used measure of the inflation rate. 
C) Real GDP is our best measure of economic growth. 
D) The PPI measures inflation as experienced by producers.

Question 4

The effect of a recession on a company like Whirlpool Corporation is such that

Accepted Answer

A) sales decline more sharply for Whirlpool as compared to firms that do not produce durable goods. 
B) profits fall less sharply as compared to firms that do not produce durable goods. 
C) the decline in sales is more short-lived as compared to firms that do not produce durable goods. 
D) there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods. 
A) sales decline more sharply for Whirlpool as compared to firms that do not produce durable goods. 
B) profits fall less sharply as compared to firms that do not produce durable goods. 
C) the decline in sales is more short-lived as compared to firms that do not produce durable goods. 
D) there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods.

Question 5

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

Accepted Answer

A) an increase in the percentage of income after net taxes that households save 
B) an increase in the budget deficit 
C) a decrease in the profitability of investment projects firms are considering 
D) a change from an income tax to a consumption tax 
A) an increase in the percentage of income after net taxes that households save 
B) an increase in the budget deficit 
C) a decrease in the profitability of investment projects firms are considering 
D) a change from an income tax to a consumption tax

Question 6

Potential GDP is the maximum output a firm is capable of producing.

Accepted Answer

A) True 
 B)False

Question 7

According to the "Rule of 70," it will take 4 years for real GDP per capita to double when the growth rate of real GDP per capita is

Accepted Answer

A) 4 percent. 
B) 12.25 percent. 
C) 17.5 percent. 
D) 28 percent. 
A) 4 percent. 
B) 12.25 percent. 
C) 17.5 percent. 
D) 28 percent.

Question 8

What is "human capital," and how does human capital affect labor productivity and economic growth?

Accepted Answer

Human capital is the accumulated knowled

Question 9

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

Accepted Answer

A) labor force participation 
B) the quantity of goods or services that can be produced by one hour of work 
C) the working-age population 
D) nominal GDP 
A) labor force participation 
B) the quantity of goods or services that can be produced by one hour of work 
C) the working-age population 
D) nominal GDP

Question 10

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.

Accepted Answer

Government programs like unemployment in

Question 11

The growth rate of real GDP in the United States rises from 4.2% to 4.4%.Explain and calculate how this increase in the growth rate of real GDP affects the number of years it will take for real GDP to double.

Accepted Answer

The "Rule of 70" states that the number

Question 12

The supply of loanable funds has a ________ slope because the greater the interest rate,the ________ the reward to saving,and the ________ the quantity of loanable funds supplied.

Accepted Answer

A) positive; lesser; lesser 
B) positive; greater; lesser 
C) negative; lesser; greater 
D) positive; greater; greater 
A) positive; lesser; lesser 
B) positive; greater; lesser 
C) negative; lesser; greater 
D) positive; greater; greater

Question 13

The demand for durable goods

Accepted Answer

A) has decreased over time. 
B) declines by a greater percentage than does GDP during a recession. 
C) declines by a smaller percentage than does GDP during a recession. 
D) rises by a greater percentage than does GDP during a recession. 
A) has decreased over time. 
B) declines by a greater percentage than does GDP during a recession. 
C) declines by a smaller percentage than does GDP during a recession. 
D) rises by a greater percentage than does GDP during a recession.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Figure 10-4  
-Refer to Figure 10-4.Which of the following is consistent with the graph depicted?

Accepted Answer

A) an increase in household income 
B) an increase in transfer payments to households 
C) an increase in the proportion of income after net taxes used for consumption 
D) an increase in tax revenues collected by the government 
A) an increase in household income 
B) an increase in transfer payments to households 
C) an increase in the proportion of income after net taxes used for consumption 
D) an increase in tax revenues collected by the government

Question 16

Accumulating a greater number of inputs will ensure that an economy will experience economic growth.

Accepted Answer

A) True 
 B)False

Question 17

If consumers decide to be more frugal and save more out of their income,then this will cause

Accepted Answer

A) a shift in the supply curve for loanable funds to the right. 
B) a shift in the supply curve for loanable funds to the left. 
C) a movement to the right along the supply curve for loanable funds. 
D) a movement to the left along the supply curve for loanable funds. 
A) a shift in the supply curve for loanable funds to the right. 
B) a shift in the supply curve for loanable funds to the left. 
C) a movement to the right along the supply curve for loanable funds. 
D) a movement to the left along the supply curve for loanable funds.

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

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

Which of the following is a correct statement?

The effect of a recession on a company like Whirlpool Corporation is such that

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

Potential GDP is the maximum output a firm is capable of producing.

According to the "Rule of 70," it will take 4 years for real GDP per capita to double when the growth rate of real GDP per capita is

What is "human capital," and how does human capital affect labor productivity and economic growth?

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

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.

The growth rate of real GDP in the United States rises from 4.2% to 4.4%.Explain and calculate how this increase in the growth rate of real GDP affects the number of years it will take for real GDP to double.

The supply of loanable funds has a slope because the greater the interest rate,the the reward to saving,and the the quantity of loanable funds supplied.

The demand for durable goods

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

Figure 10-4 -Refer to Figure 10-4.Which of the following is consistent with the graph depicted?

Accumulating a greater number of inputs will ensure that an economy will experience economic growth.

If consumers decide to be more frugal and save more out of their income,then this will cause

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

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

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

Which of the following is a correct statement?

The effect of a recession on a company like Whirlpool Corporation is such that

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

Potential GDP is the maximum output a firm is capable of producing.

According to the "Rule of 70," it will take 4 years for real GDP per capita to double when the growth rate of real GDP per capita is

What is "human capital," and how does human capital affect labor productivity and economic growth?

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

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.

The growth rate of real GDP in the United States rises from 4.2% to 4.4%.Explain and calculate how this increase in the growth rate of real GDP affects the number of years it will take for real GDP to double.

The supply of loanable funds has a ________ slope because the greater the interest rate,the ________ the reward to saving,and the ________ the quantity of loanable funds supplied.

The demand for durable goods

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

Figure 10-4 -Refer to Figure 10-4.Which of the following is consistent with the graph depicted?

Accumulating a greater number of inputs will ensure that an economy will experience economic growth.

If consumers decide to be more frugal and save more out of their income,then this will cause

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

The supply of loanable funds has a slope because the greater the interest rate,the the reward to saving,and the the quantity of loanable funds supplied.