Exam 21: Economic Growth, the Financial System, and Business Cycles

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

In a closed economy, which of the following components of GDP is not included?

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

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

Potential GDP is estimated to grow at a rate of 3.2% in the United States. Actual GDP in the U.S.

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

The only way the standard of living of the average person in a country can increase is if ________ increases faster than ________.

At the end of an expansion, wages of workers are usually rising faster than prices.

Scenario 21-1 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 21-1. Based on the information above, what is the level of public saving?

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?

If net taxes fall by $80 billion, we would expect

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.

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. ________ depend on increases in labor productivity.

Financial markets and financial intermediaries comprise the financial system.

If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from

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

India's rapid growth can be explained by

Figure 21-6 -Refer to Figure 21-6. The loanable funds market is given in the figure above. If the current real interest rate is 5 percent, which of the following is true?

Table 21-2 -Refer to Table 21-2. Using the table above, what is the approximate average annual growth rate from 2010 to 2013?

Purchases of Huggies diapers should