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

Inflation tends to ________ during the expansion phase of the business cycle and ________ during the recession phase of the business cycle.

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

If the U.S.government decided to regulate the prices of airline tickets to keep them from falling when the economy is weak,there would tend to be a ________ of airline tickets in the market and this would likely ________ the profits of U.S.airlines.

In a closed economy,public saving is equal to which of the following? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

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

Growth in potential GDP in the United States is estimated to be about

Refer to Scenario 21-1.Based on the information above,what is the level of private saving in the economy?

Explain and show graphically how government deficits can "crowd out" private investment.

Botswana's rapid growth can be explained by

If,in an economy experiencing inflation,the government decided to tax real interest income rather than nominal interest income,this change would cause the real interest rate to ________ and the equilibrium quantity of loanable funds to ________.

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

Which of the following is a correct statement?

Increases in capital per hour worked cannot sustain high rates of economic growth unless accompanied by technological change.

Figure 21-3 -Refer to Figure 21-3.Which of the following is consistent with the graph depicted above?

The demand for durable goods

From 1991 until 2001,the United States was in a period of

Which of the following is an example of human capital?

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

Which of the following increases labor productivity?

The period between a business cycle peak and a business cycle trough is called