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

For the recessions in the United States since the 1950s,

If government purchases are $400 million,taxes are $700 million,and transfers are $200 million,which of the following is true?

A decrease in the real interest rate will

Which of the following financial securities is most liquid?

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

During a recession,spending on ________ tends to fall more dramatically than spending on ________.

Which of the following goods would see the largest decline in demand during a recession?

If,in a closed economy,real GDP is $30 billion,consumption is $20 billion,and government purchases are $5 billion,what is total saving in the economy?

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

The growth rate of real GDP in the United States rises from 4.2% to 4.4%.Explain and calculate how this increase in the growth rate of real GDP affects the number of years it will take for real GDP to double.

Which of the following would increase public saving?

Labor productivity will increase if the ________ increases and ________.

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

Figure 10-5 -Refer to Figure 10-5."Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above.

The response of investment spending to an increase in the government budget deficit is called

Potential GDP is defined as

Which one of the following is not considered a financial intermediary?

Liquidity refers to

A firm can fund an expansion of its operations by

The total amount of physical capital available in a country is know as the country's