Exam 6: Economic Growth, The Financial System, and Business Cycles

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

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A) 2.6%
B) 2.9%
C) 3.1%
D) 4.2%
E) 5.3%

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A) Private saving will increase by the amount of increase in the budget surplus.
B) Private saving will decrease by the amount of increase in the budget surplus.
C) Private saving will decrease by less than the amount of increase in the budget surplus.
D) Private saving will be unaffected by the increase in the budget surplus.
E) Private saving will increase by less than the amount of decrease in public savings.

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A) using the level of the consumer price index.
B) as the percentage change in the consumer price index.
C) using the level of real GDP.
D) as the percentage change in real GDP.
E) as the change in the value of the Canadian dollar.

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A) decreased incomes.
B) increased life expectancy.
C) increased infant mortality rates.
D) increased average number of hours worked per day.
E) rising unemployment.

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A) has decreased over time.
B) declines by a greater percentage than does GDP during a recession.
C) declines by a smaller percentage than does GDP during a recession.
D) rises by a greater percentage than does GDP during a recession.
E) rises by a smaller percentage than does GDP during a recession.

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The prospects for this country's growth ...

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A) Saving is greater than investment.
B) Investment is greater than saving.
C) Investment is equal to saving.
D) Investment may be greater or smaller than saving.
E) Saving is greater than investment, but they both grow at the same rate.

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A) There was deflation in the economy between this year and last year.
B) Inflation in the economy between this year and last year was 2%.
C) Inflation in the economy between this year and last year was 102%.
D) The CPI measures only the level of prices in a given year, not the percentage change in prices from one year to the next.
E) This economy is suffering from deflation.

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A) a weak public education system
B) poor access to international capital markets
C) a lack of telecommunications companies
D) a lack of access to international markets in goods and services
E) the lack of "tech" sector

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A) production is usually rising.
B) interest rates are usually falling.
C) unemployment is usually falling.
D) income is usually rising.
E) labour force participation is usually rising.

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A) 1
B) 2
C) 3
D) 4
E) 5

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A) two consecutive quarters of declining real GDP.
B) two consecutive quarters of declining nominal GDP.
C) a significant decline in activity visible in industrial production, employment, real income, and wholesale/retail trade lasting more than a few months.
D) a significant decline in inflation and unemployment lasting more than a few months.
E) 9 months of rising unemployment and falling inflation.

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A) does not change over time.
B) grows as the economy grows.
C) changes over a given business cycle.
D) declines over time.
E) grows at the same rate every year.

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A) technology.
B) labour productivity.
C) real GDP.
D) human capital.
E) unit efficiency.

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A) issuing bonds.
B) buying stock.
C) paying dividends.
D) loaning money.
E) paying bonuses.

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A) Stocks
B) Bonds
C) Treasury bills
D) Certificates of deposit
E) Savings deposits

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