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

Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?

Explain how unemployment changes over the business cycle.Why do these changes occur?

In a closed economy,what is the relationship between saving and investment?

________ are financial securities that represent partial ownership of a firm.

Labor productivity will increase if the ________ increases and ________.

Which of the following will increase investment spending in the economy,holding everything else constant?

Which of the following will increase the real interest rate?

What is human capital?

A government budget surplus from reduced government spending (no change in net taxes)will ________ the level of investment in the economy and ________ the level of saving (private plus public)in the economy.

As the economy nears the end of an expansion,which of the following do we typically see?

Table 10-1 -Refer to Table 10-1.Using the table above,what is the approximate average annual growth rate from 2010 to 2013?

Economist Robert Fogel has estimated that by the year 2040,individuals in the United States will be spending

There is a federal budget deficit when

________ are financial securities that represent promises to repay a fixed amount of funds.

The demand for loanable funds has a ________ slope because the lower the interest rate,the ________ number of investment projects are profitable,and the ________ the quantity of loanable funds demanded.

The U.S.economy has been more stable since 1950.

An increase in public saving has what impact on the market for loanable funds?

What type of consumer goods are most affected by the business cycle: durable goods or nondurable goods? Why?

The rule of 70 states that

A period of economic expansion ends with a business cycle trough.