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

Figure 10-6 -Refer to Figure 10-6.The loanable funds market is given in the figure above.If the current real interest rate is 5 percent,which of the following is true?

If consumers decide to be more frugal and save more out of their income,then this will cause

Figure 10-2 -Refer to Figure 10-2.Which of the following is consistent with the graph depicted above?

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

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

Accumulating a greater number of inputs will ensure that an economy will experience economic growth.

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

Figure 10-6 -Refer to Figure 10-6.The loanable funds market is in equilibrium,as shown in the figure above.As a result of an increase in the government budget deficit,the ________ for loanable funds will ________,thereby ________ the equilibrium real interest rate and ________ the equilibrium quantity of loanable funds.

Inflation is measured

Since the 1950s,

Since 1900,real GDP in the United States has grown

In a closed economy,

If GDP is currently $13 trillion and is growing at a rate of 2.3% per year,how long will it take GDP to reach $26 trillion?

Centrally planned economies tend to grow more quickly than market economies.

Which of the following is a true statement about the length of recessions and expansions in the United States economy?

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

How will an increase in the government budget surplus as a result of lower government spending (with no change in net taxes)affect private saving in the economy?

What is investment in a closed economy if you have the following economic data? Y = $10 trillion C = $5 trillion TR = $2 trillion G = $2 trillion

Table 10-1 -Refer to Table 10-1.Using the table above,what is the approximate average annual growth rate from 2013 to 2016?

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.