Question 1

Which of the following lists the four phases of the business cycle in the correct sequence?

Accepted Answer

A)  Expansion,peak,contraction,trough
B)  Expansion,contraction,peak,trough
C)  Expansion,peak,contraction,depression
D)  Expansion,peak,depression,trough
E)  Peak,recession,trough,depression

Question 2

The size of the American economy will double within the next ten years.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the best definition of "productivity"?

Accepted Answer

A)  A measurement of how efficiently resources are converted into goods and services through a production process
B)  A measurement of how technology increases the ability of an economy to produce goods and services
C)  The ratio of inputs to output
D)  The quantity of goods and services produced during a given period of time by labor
E)  The total output produced in an economy given its set of resources and the current state of technology

Question 4

The rate of technological growth in the U.S.economy is higher today than it was in the 1960s.

Accepted Answer

A) True 
 B)False

Question 5

How many complete business cycles has the U.S.experienced since 1960?

Accepted Answer

A)  7
B)  1
C)  12
D)  2
E)  23

Question 6

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 trough 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

Question 7

Which of the following is the most commonly used measurement of economic growth? Changes in

Accepted Answer

A)  Real GDP
B)  The money supply
C)  Nominal GDP
D)  The federal government debt
E)  The level of international trade

Question 8

Monetary theories of the business cycle postulate that cycles are strongly influenced by the policy actions of the

Accepted Answer

A)  U.S.Congress
B)  Federal Reserve
C)  World Trade Organization
D)  National Bureau of Economic Research
E)  U.S.Department of Commerce

Question 9

Most economic forecasts of the near future predict that the standard of living in the United States will fall.

Accepted Answer

A) True 
 B)False

Question 10

In the 1990s,the U.S.economy grew at an average annual rate of only 2.1%.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is consistent with economic growth?

Accepted Answer

A)  Lower unemployment
B)  Increased GDP
C)  Increased aggregate demand
D)  Increased sales
E)  All of the above

Question 12

Of the following,which of the following values most closely approximates the average annual rate of growth for the U.S.economy since 1960?

Accepted Answer

A)  1.65%
B)  10.22%
C)  5.35%
D)  4.02%
E)  3.26%

Question 13

The slowdown in the rate of population growth has increased the growth rate in the real per capita GDP for the U.S.

Accepted Answer

A) True 
 B)False

Question 14

The U.S.government spends less than 1% of GDP on research and development each year.

Accepted Answer

A) True 
 B)False

Question 15

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" >
-An economic expansion 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

Question 16

How much does the federal government spend annually on research and development?

Accepted Answer

A)  Less than 1% of GDP
B)  About 10% of GDP
C)  More than 25% of its budget
D)  Zero
E)  Exactly 5% of its budget

Question 17

Between 1960 and the mid-1990s,the American economy more than tripled its level of real GDP.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is NOT something that will increase economic growth?

Accepted Answer

A)  Expenditures on research and development
B)  Increased education
C)  Using resources to develop additional capital
D)  Replacing old machinery
E)  All of the above will increase economic growth

Question 19

To stimulate additional economic investment,some policy makers favor increasing the tax rate on capital gains.

Accepted Answer

A) True 
 B)False

Question 20

According to Real Business Cycle Theory,the primary factor that increases aggregate supply is

Accepted Answer

A)  Savings
B)  Increases in the size of the labor force
C)  Technological improvements
D)  Government spending
E)  Reductions in regulation

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

How many complete business cycles has the U.S.experienced since 1960?

Correct AnswerverifiedShow Answer

According to Real Business Cycle Theory,the primary factor that increases aggregate supply is

Correct AnswerverifiedShow Answer

The rate of technological growth in the U.S.economy is higher today than it was in the 1960s.

Correct AnswerverifiedShow Answer

Which of the following lists the four phases of the business cycle in the correct sequence?

Correct AnswerverifiedShow Answer

The U.S.government spends less than 1% of GDP on research and development each year.

Correct AnswerverifiedShow Answer

Between 1960 and the mid-1990s,the American economy more than tripled its level of real GDP.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To stimulate additional economic investment,some policy makers favor increasing the tax rate on capital gains.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -An economic expansion is illustrated on the graph

Correct AnswerverifiedShow Answer

How much does the federal government spend annually on research and development?

Correct AnswerverifiedShow Answer

The slowdown in the rate of population growth has increased the growth rate in the real per capita GDP for the U.S.

Correct AnswerverifiedShow Answer

Which of the following is NOT something that will increase economic growth?

Correct AnswerverifiedShow Answer

Of the following,which of the following values most closely approximates the average annual rate of growth for the U.S.economy since 1960?

Correct AnswerverifiedShow Answer

Most economic forecasts of the near future predict that the standard of living in the United States will fall.

Correct AnswerverifiedShow Answer

The size of the American economy will double within the next ten years.

Correct AnswerverifiedShow Answer

Which of the following is consistent with economic growth?

Correct AnswerverifiedShow Answer

Which of the following is the most commonly used measurement of economic growth? Changes in

Correct AnswerverifiedShow Answer

Monetary theories of the business cycle postulate that cycles are strongly influenced by the policy actions of the

Correct AnswerverifiedShow Answer

In the 1990s,the U.S.economy grew at an average annual rate of only 2.1%.

Correct AnswerverifiedShow Answer

Which of the following is the best definition of "productivity"?

Correct AnswerverifiedShow Answer

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