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

Since 1950,the average length of a recession in the United States has been

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

There is a government budget surplus if

Human capital refers to which of the following?

Figure 21-4 -Refer to Figure 21-4.Which of the following is consistent with the graph depicted?

In a closed economy public saving plus private saving is equal to

A firm can fund an expansion of its operations by

Potential GDP refers to

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

According to the "Rule of 70",how many years will it take for real GDP per capita to double when the growth rate of real GDP per capita is 5%?

The NBER's Business Cycle Dating Committee defines a recession as at least two consecutive quarters of falling real GDP.

Under which of the following circumstances would the government be running a deficit?

According to the National Bureau of Economic Research,the United States experienced ________ recessions since 1950.

Which of the following is most liquid?

If Ebenezer Scrooge spends rather than saves his vast wealth he will

When the economy enters a recessionary phase of the business cycle,unemployment tends to

Which of the following explains the cause of the change in the unemployment rate at the end of a recession?

The period of expansion ends with a ________ and the period of recession ends with a ________.

If real GDP grows by 3% in 2009,3.2% in 2010,and 2.5% in 2011,what is the average annual growth rate of real GDP?

How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection,in what country would you expect to have a longer life expectancy,the United States or India? Explain.