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

A period of expansion in the business cycle ends when

How would the equilibrium quantity of loanable funds respond to a change from an income tax to a consumption tax?

What is the main difference between a consumption tax and an income tax?

For the recessions in the United States since the 1950s,

During an expansion,how do inflation and unemployment typically change?

Which one of the following is not considered a financial intermediary?

If,between 2003 and 2013,the economy's real GDP grew from $20 billion to $40 billion,what was the average annual growth rate in the economy?

There is a government budget surplus if

Explain why increasing the government budget deficit can decrease investment spending.

Under which of the following circumstances would private saving be positive in a closed economy?

Which of the following is not one of the key services provided by the financial system?

Scenario 10-1 Consider the following data for a closed economy: Y = $12 trillion C = $8 trillion I= $2 trillion G = $2 trillion TR = $2 trillion T = $3 trillion -Refer to Scenario 10-1.Based on the information above,what is the level of public saving?

An increase in the government budget deficit will shift the ________ curve for loanable funds to the ________ and the equilibrium real interest rate will ________.

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

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

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?

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

Explain and show graphically how an increase in government spending affects the equilibrium interest rate in the market for loanable funds.

A recession begins with a(n)________ in spending by firms on capital goods and a(n)________ in spending on durable goods by households.

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