Question 1

Economic growth is an important social issue,but it is not related to other problems such as unemployment and poverty.

Accepted Answer

A) True 
 B)False

Question 2

Which theories concerning the business cycle focus on factors outside of the economy?

Accepted Answer

A)  Expectations theories
B)  Inventory theories
C)  Exogenous theories
D)  Monetary theories
E)  Theories of innovation

Question 3

Even small differences in growth rates can result in significant gaps in GDP between two countries over the long run.

Accepted Answer

A) True 
 B)False

Question 4

Investments in capital goods increase an economy's ability to produce consumer goods in the futurE.

Accepted Answer

A) True 
 B)False

Question 5

Economists consider economic growth as a short-run process.

Accepted Answer

A) True 
 B)False

Question 6

The most commonly used tool to forecast future changes in economic activity is the

Accepted Answer

A)  Leading economic indicators index
B)  Supply of money
C)  Unemployment rate
D)  Lagging economic indicators index
E)  Federal budget deficit

Question 7

Why does spending on capital tend to increase economic growth more than spending of consumption goods? Because

Accepted Answer

A)  Capital lasts longer than consumer goods
B)  Capital can be used to produce future goods and services
C)  Capital puts technology to use
D)  People

Question 8

What is technology?

Accepted Answer

A)  The tools of production
B)  The human input of production
C)  Computers,robots,and factories
D)  The means and methods of production
E)  The mix of labor and capital used in production

Question 9

In recent years,capital has grown at a slower rate than the labor force within the U.S.economy.

Accepted Answer

A) True 
 B)False

Question 10

The average annual rate of growth for the U.S.economy during the twentieth century was between 3% and 3.5%.

Accepted Answer

A) True 
 B)False

Question 11

Economic growth is necessary to create new jobs,increase incomes,and raise standards of living.

Accepted Answer

A) True 
 B)False

Question 12

What do you call business cycle theories based on the belief that economic activity follows general trends of optimism and pessimism?

Accepted Answer

A)  Theories of expectations
B)  Real business cycle theories
C)  Theories of innovation
D)  Theories of externalities
E)  Sunspot theories

Question 13

Close examination of the recent history of real GDP in the U.S.reveals that the rate of economic growth has been diminishing over timE.

Accepted Answer

A) True 
 B)False

Question 14

Economic growth compounds over timE.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is responsible for officially tracking the Index of Leading Economic Indicators?

Accepted Answer

A)  The U.S.Department of Commerce
B)  The Conference Board
C)  The Bureau of Labor Statistics
D)  The Council of Economic Advisors
E)  The Federal Reserve Board of Governors

Question 16

A reduction in savings will lead to a reduction in the level of investment.

Accepted Answer

A) True 
 B)False

Question 17

Economists have agreed upon one widely accepted theory to explain business cycle behavior.

Accepted Answer

A) True 
 B)False

Question 18

Which group is responsible for announcing the dates for each phase of a U.S.business cycle?

Accepted Answer

A)  The Federal Reserve
B)  The National Bureau of Economic Research
C)  The Department of Commerce
D)  The Bureau of Labor Statistics
E)  The Federal Business Cycle Committee

Question 19

Relative to the past,business cycles in the U.S.are becoming

Accepted Answer

A)  Shorter in duration
B)  More severe
C)  Longer in duration
D)  (a) and (b) 
E)  Non-existent

Question 20

The Following Questions Refer to the graph below. 2 B) At point T3 C) Between T1 and T2 D) Between T2 and T3 E) Along the straight line" class="answers-bank-image d-inline" rel="preload" >
-A peak in the business cycle is illustrated on the graph

Accepted Answer

A)  At point T2
B)  At point T3
C)  Between T1 and T2
D)  Between T2 and T3
E)  Along the straight line

Exam 11: Economic Growth: Why Is the Economic Road so Bumpy

Economists consider economic growth as a short-run process.

Correct AnswerverifiedShow Answer

Economic growth is an important social issue,but it is not related to other problems such as unemployment and poverty.

Correct AnswerverifiedShow Answer

The average annual rate of growth for the U.S.economy during the twentieth century was between 3% and 3.5%.

Correct AnswerverifiedShow Answer

The most commonly used tool to forecast future changes in economic activity is the

Correct AnswerverifiedShow Answer

Economic growth is necessary to create new jobs,increase incomes,and raise standards of living.

Correct AnswerverifiedShow Answer

Economists have agreed upon one widely accepted theory to explain business cycle behavior.

Correct AnswerverifiedShow Answer

Which of the following is responsible for officially tracking the Index of Leading Economic Indicators?

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -A peak in the business cycle is illustrated on the graph

Correct AnswerverifiedShow Answer

In recent years,capital has grown at a slower rate than the labor force within the U.S.economy.

Correct AnswerverifiedShow Answer

Economic growth compounds over timE.

Correct AnswerverifiedShow Answer

Close examination of the recent history of real GDP in the U.S.reveals that the rate of economic growth has been diminishing over timE.

Correct AnswerverifiedShow Answer

Which theories concerning the business cycle focus on factors outside of the economy?

Correct AnswerverifiedShow Answer

Investments in capital goods increase an economy's ability to produce consumer goods in the futurE.

Correct AnswerverifiedShow Answer

Why does spending on capital tend to increase economic growth more than spending of consumption goods? Because

Correct AnswerverifiedShow Answer

A reduction in savings will lead to a reduction in the level of investment.

Correct AnswerverifiedShow Answer

Relative to the past,business cycles in the U.S.are becoming

Correct AnswerverifiedShow Answer

Which group is responsible for announcing the dates for each phase of a U.S.business cycle?

Correct AnswerverifiedShow Answer

What is technology?

Correct AnswerverifiedShow Answer

What do you call business cycle theories based on the belief that economic activity follows general trends of optimism and pessimism?

Correct AnswerverifiedShow Answer

Even small differences in growth rates can result in significant gaps in GDP between two countries over the long run.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified