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

If technological change increases the profitability of new investment for firms, then the ________ curve for loanable funds will shift to the ________ and the equilibrium real interest rate will ________.

According to Robert Fogel, economic growth ________ health, and health ________ economic growth.

How are unemployment, inflation, and the business cycle related?

As the economy nears the end of a recession, which of the following do we typically see?

If, as economist Alwyn Young has suggested, high growth rates in Singapore are not a result of technological progress, how are growth rates in Singapore expected to change over time?

Between 1950 and 2009, the average length of recessions in the United States was

In 2003, Congress passed a tax cut that included a reduction in the marginal tax rate on stock dividends. This essentially increased the after-tax rate of return on stocks that offer dividends. Using the loanable funds market, describe what will happen to saving, investment, economic growth, the real interest rate, and the quantity of loanable funds exchanged.

Economist Steve Landsburg has pointed out that Ebenezer Scrooge's change in behavior from miser to spender might actually be detrimental to the economy because

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

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

An increase in the real interest rate will decrease consumption and investment.

Workers in high-income countries have ________ to work with than do workers in low-income countries.

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

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

Figure 21-1 -Refer to Figure 21-1. Which of the following is consistent with the graph depicted above?

According to the National Bureau of Economic Research, the recession that began in December 2007

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

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

Inflation is measured

Countries without well-developed financial systems are able to sustain high levels of economic growth.