Question 1

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

Accepted Answer

A)  cyclical unemployment has been non-existent.
B)  unemployment rises on average by about 1.2 percentage points during the 12 months after a recession begins.
C)  unemployment falls on average by 2 percentage points during the 12 months after a recession begins.
D)  unemployment rises on average about 5 percentage points during the 12 months after a recession begins.E) A) and B)
F) A) and C)

Question 2

Table 10-2
 
-Refer to Table 10-2.Using the table above,what is the approximate growth rate of real GDP from 2015 to 2016?

Accepted Answer

A)  -2%
B)  -1%
C)  1%
D)  2%E) All of the above
F) None of the above

Question 3

Figure 10-1 
-Refer to Figure 10-1.Which of the following is consistent with the graph depicted above?

Accepted Answer

A)  An expected recession decreases the profitability of new investment.
B)  Technological change increases the profitability of new investment.
C)  The government runs a budget surplus.
D)  Households become spendthrifts and begin to save less.E) A) and B)
F) B) and C)

Question 4

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.E) B) and C)
F) A) and B)

Question 5

Explain why a centrally-planned economy might not grow as rapidly as a market economy.

Accepted Answer

Technological change is very important f...

Question 6

Which of the following will increase investment spending in the economy,holding everything else constant?

Accepted Answer

A)  an increase in the federal government surplus
B)  an increase in the budget deficit
C)  an increase in consumer dissavings
D)  an increase in transfer paymentsE) C) and D)
F) A) and D)

Question 7

Which of the following will result in an increase in labor productivity?

Accepted Answer

A)  a decrease in the number of people attending institutions of higher education
B)  a decline in the amount of human capital per worker
C)  an increase in technology
D)  a decline in the capital stock per hour workedE) B) and D)
F) A) and C)

Question 8

In a closed economy,which of the following components of GDP is not included?

Accepted Answer

A)  investment
B)  government spending
C)  net exports
D)  consumptionE) A) and D)
F) None of the above

Question 9

Inflation tends to ________ during the expansion phase of the business cycle and ________ during the recession phase of the business cycle.

Accepted Answer

A)  increase;decrease
B)  decrease;increase
C)  decrease;decrease further
D)  increase;increase furtherE) B) and C)
F) A) and C)

Question 10

What is one difference between stocks and bonds?

Accepted Answer

A)  Bonds earn a higher rate of return than stocks.
B)  Stocks earn a higher rate of return than bonds.
C)  Bonds are purchased at a bank,while stocks are purchased through the federal government.
D)  Stocks represent partial ownership in a firm,while bonds do not.E) A) and B)
F) A) and C)

Question 11

Retained earnings are always sufficient to finance a firm's rapid expansion in a high-growth economy.

Accepted Answer

A) True 
 B)False

Question 12

During the expansion phase of the business cycle,which of the following eventually increases?

Accepted Answer

A)  production
B)  employment
C)  income
D)  all of the aboveE) All of the above
F) C) and D)

Question 13

During the recession phase of the business cycle,

Accepted Answer

A)  production is usually rising.
B)  interest rates are usually falling.
C)  unemployment is usually falling.
D)  income is usually rising.E) None of the above
F) All of the above

Question 14

A good measure of the standard of living is

Accepted Answer

A)  real GDP per capita.
B)  nominal GDP per capita.
C)  total real GDP.
D)  total nominal GDP.E) C) and D)
F) B) and D)

Question 15

How are unemployment,inflation,and the business cycle related?

Accepted Answer

A recessionary phase of a business cycle...

Question 16

The Congressional Budget Office reported that federal budget deficits in the United States were likely to increase in future years,and these higher deficits might "pose a threat to the economy by crowding out business investment and threatening a spike in interest rates." This higher budget deficit would be represented graphically by

Accepted Answer

A)  a shift in the supply curve for loanable funds to the right.
B)  a shift in the supply curve for loanable funds to the left.
C)  a movement to the right along the supply curve for loanable funds.
D)  a movement to the left along the supply curve for loanable funds.E) B) and D)
F) B) and C)

Question 17

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.E) B) and C)
F) A) and B)

Question 18

Explain what happens to inflation during the business cycle.Give an intuitive explanation as to why inflation changes the way it does over the business cycle.

Accepted Answer

Inflation will rise during an expansion ...

Question 19

Which of the following indicates that the U.S.economy has become more stable since 1950?

Accepted Answer

A)  longer recessions
B)  shorter expansions
C)  less severe fluctuations in real GDP
D)  All of the above indicate that the U.S.economy has become more stable since 1950.E) A) and B)
F) A) and D)

Question 20

The demand for loanable funds is downward sloping because the ________ the interest rate,the ________ the number of profitable investment projects a firm can undertake,and the ________ the quantity demanded of loanable funds.

Accepted Answer

A)  lower;greater;greater
B)  lower;smaller;greater
C)  greater;greater;greater
D)  greater;smaller;greaterE) B) and C)
F) B) and D)

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

The demand for loanable funds is downward sloping because the the interest rate,the the number of profitable investment projects a firm can undertake,and the the quantity demanded of loanable funds.

Correct Answer
verified

Which of the following will increase investment spending in the economy,holding everything else constant?

Correct Answer
verified

During the recession phase of the business cycle,

Correct Answer
verified

Figure 10-1 -Refer to Figure 10-1.Which of the following is consistent with the graph depicted above?

Correct Answer
verified

Table 10-2 -Refer to Table 10-2.Using the table above,what is the approximate growth rate of real GDP from 2015 to 2016?

Correct Answer
verified

What is one difference between stocks and bonds?

Correct Answer
verified

The federal budget deficit can be reduced by

Correct Answer
verified

The budget deficit is defined as

Correct Answer
verified

Inflation tends to during the expansion phase of the business cycle and during the recession phase of the business cycle.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Which of the following will result in an increase in labor productivity?

Correct Answer
verified

A good measure of the standard of living is

Correct Answer
verified

Explain what happens to inflation during the business cycle.Give an intuitive explanation as to why inflation changes the way it does over the business cycle.

Correct Answer
verified
Inflation will rise during an expansion ...
View Answer

Which of the following indicates that the U.S.economy has become more stable since 1950?

Correct Answer
verified

In a closed economy,which of the following components of GDP is not included?

Correct Answer
verified

Retained earnings are always sufficient to finance a firm's rapid expansion in a high-growth economy.

Correct Answer
verified

How are unemployment,inflation,and the business cycle related?

Correct Answer
verified
A recessionary phase of a business cycle...
View Answer

During the expansion phase of the business cycle,which of the following eventually increases?

Correct Answer
verified

Explain why a centrally-planned economy might not grow as rapidly as a market economy.

Correct Answer
verified
Technological change is very important f...
View Answer

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

The demand for loanable funds is downward sloping because the ________ the interest rate,the ________ the number of profitable investment projects a firm can undertake,and the ________ the quantity demanded of loanable funds.

Correct AnswerverifiedShow Answer

Which of the following will increase investment spending in the economy,holding everything else constant?

Correct AnswerverifiedShow Answer

During the recession phase of the business cycle,

Correct AnswerverifiedShow Answer

Figure 10-1 -Refer to Figure 10-1.Which of the following is consistent with the graph depicted above?

Correct AnswerverifiedShow Answer

Table 10-2 -Refer to Table 10-2.Using the table above,what is the approximate growth rate of real GDP from 2015 to 2016?

Correct AnswerverifiedShow Answer

What is one difference between stocks and bonds?

Correct AnswerverifiedShow Answer

The federal budget deficit can be reduced by

Correct AnswerverifiedShow Answer

The budget deficit is defined as

Correct AnswerverifiedShow Answer

Inflation tends to ________ during the expansion phase of the business cycle and ________ during the recession phase of the business cycle.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following will result in an increase in labor productivity?

Correct AnswerverifiedShow Answer

A good measure of the standard of living is

Correct AnswerverifiedShow Answer

Explain what happens to inflation during the business cycle.Give an intuitive explanation as to why inflation changes the way it does over the business cycle.

Correct AnswerverifiedInflation will rise during an expansion ...View AnswerShow Answer

Which of the following indicates that the U.S.economy has become more stable since 1950?

Correct AnswerverifiedShow Answer

In a closed economy,which of the following components of GDP is not included?

Correct AnswerverifiedShow Answer

Retained earnings are always sufficient to finance a firm's rapid expansion in a high-growth economy.

Correct AnswerverifiedShow Answer

How are unemployment,inflation,and the business cycle related?

Correct AnswerverifiedA recessionary phase of a business cycle...View AnswerShow Answer

During the expansion phase of the business cycle,which of the following eventually increases?

Correct AnswerverifiedShow Answer

Explain why a centrally-planned economy might not grow as rapidly as a market economy.

Correct AnswerverifiedTechnological change is very important f...View AnswerShow Answer

The demand for loanable funds is downward sloping because the the interest rate,the the number of profitable investment projects a firm can undertake,and the the quantity demanded of loanable funds.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Inflation tends to during the expansion phase of the business cycle and during the recession phase of the business cycle.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Inflation will rise during an expansion ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A recessionary phase of a business cycle...
View Answer

Correct Answer
verified

Correct Answer
verified
Technological change is very important f...
View Answer