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

If there is public dissaving,investment spending in the economy will decline,holding everything else constant.

Since 1900,real GDP per capita has ________ and this measure ________ the actual growth in standards of living in the United States over this time.

Typically,as an economy begins to emerge from a recessionary phase of the business cycle,

When the economy reaches a trough in a business cycle,which of the following will occur?

Use the equations for public and private saving to demonstrate how total saving in the economy equals investment.

Which of the following would occur if the United States switched from income taxes to consumption taxes?

Public saving in the economy can be increased by

Increasing the amount of consumption spending and reducing the amount of savings ________ investment expenditures,and ________ long-run economic growth in the economy.

In the United States,the average length of expansions from 1950 to 2009 was more than twice as long than they were from 1900 to 1950.

The Business Cycle Dating Committee defines a recession as

Consider the following data for a closed economy: a.Y = $12 trillion b.C = $8 trillion c.I= $3 trillion d.TR = $2 trillion e.T = $3 trillion Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.

An increase in the demand for loanable funds will occur if there is

Since the 1950s,

The federal budget deficit can be reduced by

Potential GDP refers to

The key to sustained economic growth is increasing labor productivity.

Which of the following financial securities is most liquid?

Article Summary According to the Office for National Statistics in the United Kingdom, productivity in the UK in 2012 was well below the average of the G7 countries, only faring better than Japan. The G7 is a group of the seven most industrialized countries, and includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Compared to the G7 average, the UK was 16% less productive per hour worked, and output was 19% worse when measured on a per worker basis. The productivity gap was the largest for the UK since 1994. Worker productivity has increased in all of the G7 nations except for the UK since 2007, where it has fallen by two percentage points. The most productive workers were in the United States, where workers were 29 percentage points more productive per hour worked than in the UK. Source: "UK workers much less productive than others in the G7," Guardian, September 18, 2013. -Refer to the Article Summary.Unlike in the UK,labor productivity in the other G7 nations has increased since 2007.An increase in labor productivity

When potential GDP increases,is it necessarily the case that real GDP increases as well? Explain.

A good measure of the standard of living is