Question 1

Because Boeing produces expensive durable goods,the demand for their goods

Accepted Answer

A)  is likely to increase during recession. 
B)  declines when incomes in the economy are rising. 
C)  is consistently high, regardless of the state of the economy. 
D)  tends to follow the business cycle. 
A)  is likely to increase during recession. 
B)  declines when incomes in the economy are rising. 
C)  is consistently high, regardless of the state of the economy. 
D)  tends to follow the business cycle. D

Question 2

There is public dissaving if

Accepted Answer

A) G + TR > T. B) G + TR G + T. D) TR < G + T. A) G + TR > T. B) G + TR G + T. D) TR < G + T. A

Question 3

Market economies tend to grow more quickly than centrally-planned economies.

Accepted Answer

A) True 
 B)False  True

Question 4

Table 21-1
  
-Refer to Table 21-1. Using the table above,what is the approximate growth rate of real GDP from 2010 to 2011?

Accepted Answer

A)  -2% 
B)  -1% 
C)  1% 
D)  2% 
A)  -2% 
B)  -1% 
C)  1% 
D)  2%

Question 5

Outline the various actions the government sector could take to promote growth.

Accepted Answer

The government should secure private pro

Question 6

The demand for loanable funds has a ________ slope because the lower the interest rate,the ________ number of investment projects are profitable,and the ________ the quantity of loanable funds demanded.

Accepted Answer

A)  negative; greater; greater 
B)  negative; greater; lesser 
C)  negative; lesser; greater 
D)  positive; lesser; lesser 
A)  negative; greater; greater 
B)  negative; greater; lesser 
C)  negative; lesser; greater 
D)  positive; lesser; lesser

Question 7

________ depend on increases in labor productivity

Accepted Answer

A)  Advances in technology 
B)  Increases in real GDP per capita 
C)  Decreases in the inflation rate 
D)  Decreases in the unemployment rate 
A)  Advances in technology 
B)  Increases in real GDP per capita 
C)  Decreases in the inflation rate 
D)  Decreases in the unemployment rate

Question 8

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.

Accepted Answer

Start with the expression of total savin

Question 9

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

Accepted Answer

A)  planned economy. 
B)  market economy. 
C)  open economy. 
D)  closed economy. 
A)  planned economy. 
B)  market economy. 
C)  open economy. 
D)  closed economy.

Question 10

The budget deficit is defined as

Accepted Answer

A)  T - (G + TR), and this is negative. 
B)  T - (G + TR), and this is positive. 
C)  T + (G - TR), and this is negative. 
D)  T + (G + TR), and this is negative. 
A)  T - (G + TR), and this is negative. 
B)  T - (G + TR), and this is positive. 
C)  T + (G - TR), and this is negative. 
D)  T + (G + TR), and this is negative.

Question 11

When a recession ends,

Accepted Answer

A)  interest rates decrease. 
B)  households decrease spending on durable goods. 
C)  the household sector decreases spending substantially. 
D)  firms increase the amount of borrowing. 
A)  interest rates decrease. 
B)  households decrease spending on durable goods. 
C)  the household sector decreases spending substantially. 
D)  firms increase the amount of borrowing.

Question 12

The federal budget deficit can be reduced by

Accepted Answer

A)  raising taxes. 
B)  raising government spending. 
C)  raising transfer payments. 
D)  higher interest rates. 
A)  raising taxes. 
B)  raising government spending. 
C)  raising transfer payments. 
D)  higher interest rates.

Question 13

Suppose you are an advisor to the Business Cycle Dating Committee.You are asked to look at macroeconomic data to evaluate whether the economy has entered a recession this year.Which data do you look at? How does the economy behave at the onset of a recession?

Accepted Answer

Since a recession is defined as signific

Question 14

Private saving is defined as

Accepted Answer

A)  Y + TR - C - T. 
B)  T + G + TR. 
C)  T - G + TR. 
D)  Y + TR + C - T. 
A)  Y + TR - C - T. 
B)  T + G + TR. 
C)  T - G + TR. 
D)  Y + TR + C - T.

Question 15

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

Accepted Answer

A)  After 1950, the length of expansions equaled the length of recessions. 
B)  After 1950, the length of expansions were much less than the length of recessions. 
C)  After 1950, the length of expansions were much longer than the length of recessions. 
D)  After 1950, the length of expansions were brief and almost nonexistent. 
A)  After 1950, the length of expansions equaled the length of recessions. 
B)  After 1950, the length of expansions were much less than the length of recessions. 
C)  After 1950, the length of expansions were much longer than the length of recessions. 
D)  After 1950, the length of expansions were brief and almost nonexistent.

Question 16

A(n)________ comes to an end with a business cycle ________.

Accepted Answer

A)  recession; peak 
B)  recession; trough 
C)  expansion; trough 
D)  expansion; bubble 
A)  recession; peak 
B)  recession; trough 
C)  expansion; trough 
D)  expansion; bubble

Question 17

An increase in the real interest rate does which of the following?

Accepted Answer

A)  reduces the demand for loanable funds 
B)  reduces saving 
C)  reduces consumption spending 
D)  increases the demand for loanable funds 
A)  reduces the demand for loanable funds 
B)  reduces saving 
C)  reduces consumption spending 
D)  increases the demand for loanable funds

Question 18

Empirical evidence shows that the impact of government budget deficits and surpluses on the equilibrium interest rate is quite large.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  Real GDP is falling. 
B)  Incomes are growing at a slower rate than the population. 
C)  Real GDP per capita is rising. 
D)  Living standards are falling. 
A)  Real GDP is falling. 
B)  Incomes are growing at a slower rate than the population. 
C)  Real GDP per capita is rising. 
D)  Living standards are falling.

Question 20

An increase in labor productivity

Accepted Answer

A)  allows the average consumer to increase consumption. 
B)  will increase the labor force participation rate. 
C)  will create short-run, but not long-run, economic growth. 
D)  will increase output and decrease wages in the long run. 
A)  allows the average consumer to increase consumption. 
B)  will increase the labor force participation rate. 
C)  will create short-run, but not long-run, economic growth. 
D)  will increase output and decrease wages in the long run.

Because Boeing produces expensive durable goods,the demand for their goods

There is public dissaving if

Market economies tend to grow more quickly than centrally-planned economies.

Table 21-1 -Refer to Table 21-1. Using the table above,what is the approximate growth rate of real GDP from 2010 to 2011?

Outline the various actions the government sector could take to promote growth.

The demand for loanable funds has a slope because the lower the interest rate,the number of investment projects are profitable,and the the quantity of loanable funds demanded.

________ depend on increases in labor productivity

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.

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

The budget deficit is defined as

When a recession ends,

The federal budget deficit can be reduced by

Suppose you are an advisor to the Business Cycle Dating Committee.You are asked to look at macroeconomic data to evaluate whether the economy has entered a recession this year.Which data do you look at? How does the economy behave at the onset of a recession?

Private saving is defined as

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

A(n) comes to an end with a business cycle .

An increase in the real interest rate does which of the following?

Empirical evidence shows that the impact of government budget deficits and surpluses on the equilibrium interest rate is quite large.

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

An increase in labor productivity

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

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

Because Boeing produces expensive durable goods,the demand for their goods

There is public dissaving if

Market economies tend to grow more quickly than centrally-planned economies.

Table 21-1 -Refer to Table 21-1. Using the table above,what is the approximate growth rate of real GDP from 2010 to 2011?

Outline the various actions the government sector could take to promote growth.

The demand for loanable funds has a ________ slope because the lower the interest rate,the ________ number of investment projects are profitable,and the ________ the quantity of loanable funds demanded.

________ depend on increases in labor productivity

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.

A country with no trade and no borrowing and lending relationships with other countries is known as a(n)

The budget deficit is defined as

When a recession ends,

The federal budget deficit can be reduced by

Suppose you are an advisor to the Business Cycle Dating Committee.You are asked to look at macroeconomic data to evaluate whether the economy has entered a recession this year.Which data do you look at? How does the economy behave at the onset of a recession?

Private saving is defined as

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

A(n)________ comes to an end with a business cycle ________.

An increase in the real interest rate does which of the following?

Empirical evidence shows that the impact of government budget deficits and surpluses on the equilibrium interest rate is quite large.

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

An increase in labor productivity

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

The demand for loanable funds has a slope because the lower the interest rate,the number of investment projects are profitable,and the the quantity of loanable funds demanded.

A(n) comes to an end with a business cycle .