((Chapter 8)) Economic Growth, the Financial, and Business Cycles

WHich of the following choices is correct

Recessions were more severe and lasted longer in the first half

Holding all else constant, a federal government budget deficit will

decrease the supply of loanable funds and increase the equilibrium real interest rate

Business demand loanable funds because

firms need to borrow funds for new projects.....

The two factors that cause labor productivity to increase over time are

the quantity of capital per hour worked and the level of technology

which of the following factors determines the supply of loanable funds?

the willingness of households and governments to save

What is the best use of the rule of 70 among those listed below

to judge how rapidly real GDP per capita is growing over long time periods

Households supply loanable funds because the

interest income received from the borrowers

The computation of the average annual growth rate of real GDP

is more complex when examining data for a long period of time that when examining data for only a few years

following reasons except

people have become more rational and control their spending behavior countercyclical

Which is not a loanable fund

real estate

The financial system-either financial markets or financial intermediaries- provides savers and borrowers will all EXCEPT

security to savers by warranting that their funds are fully insured against loss

Potential GDP is

sometimes greater, sometimes less, and sometimes equal to actual real GDP

which of the following equals the amount of public saving

Government tax revenue minus the sum of government purchases and transfer payments to households