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

A financial intermediary's main function is to match ________ with excess funds to ________ with a shortage of funds.

Under which of the following circumstances would private saving be positive in a closed economy?

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

Explain and show graphically how a decrease in government spending affects the equilibrium interest rate and equilibrium quantity of loanable funds in the market for loanable funds.

Use the rule of 70 to illustrate how small differences in growth rates can have a large impact on how rapidly the standard of living in a country increases.

When production in an economy grows more quickly than the population in that economy,which of the following must be occurring?

Potential GDP is always greater than real GDP in an economy.

How have government policies and programs affected the volatility of the business cycle in the United States since 1950? Explain and provide at least two specific examples of policies or programs that may have had an impact.

Technological advances generally result in

Using equations for public and private saving,show that saving must equal investment in a closed economy.Begin with the expression for total saving in the economy.

Give three reasons why the U.S.economy is more stable since 1950.

A recession begins with a(n)________ in spending by firms on capital goods and a(n)________ in spending on durable goods by households.

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

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

In an open economy,the relationship between GDP (Y)and expenditures is Y = C + I + G.

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)

An increase in the government budget deficit will shift the ________ curve for loanable funds to the ________ and the equilibrium real interest rate will ________.

If real GDP in a small country in 2015 is $8 billion and real GDP in the same country in 2016 is $8.3 billion,the growth rate of real GDP between 2015 and 2016

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.

In comparison to a government that runs a balanced budget,when the government runs a budget deficit,