Macroeconomics Chapter 10-Nelson – Flashcards

If GDP is currently 13$ trillion and is growing at a rate of 7% per year, how long will it take GDP to reach $26 trillion?

You buy a bond issued by general mills Corporation. You are the ____ and General Mills is the _____

The primary function of a nations financial system is

Which of the following would increase public saving (other things equal?)

Under which of the following circumstances would the government be running a deficit ?

If the governments budget deficit increases, then the ____ curve for loanable funds will shift to the _____ and the equilibrium real interest rate will ______

The loanable funds in market is in equilibrium as shown in the figure above. Suppose that there is a cultural change in society and people begin to be more frugal than before and thus increase their desire to save money. The _____ loanable funds will _____, thereby ______ the equilibrium real interest rate and ______ the equilibrium quantity of loanable funds

If the real interest rate is 4%, then savings is equal to $______ million, investment is equal to $______, and the equilibrium quantity of loanable funds is equal to $_____ million

If the government simultaneously instituted a tax credit for investment spending and a tax decrease on savings income, then which of the following will happen with certainty?

Which of the following policies/events results in an increase in equilibrium quantity of savings?

Consider a technological advance which makes capital more productive. In the loanable funds framework, this will lead to an increase in the equilibrium quantity of savings. Which of the following best explained this increase?

Suppose that the US economy enters an economic recession that is similar to most recessions in the US for the past 50 years. It is likely that the unemployment rate will _____ and the inflation rate will _____

Over the past 50 years, the US has somewhat shifted away from the production of goods toward the production of services. Most economists believe that this change, other things equal has made our economy ______ stable.

In the long run, _____ differences in economic growth rates result in ______ differences in GDP per capita.

If GDP is currently $13 trillion and is growing at a rate of 2.3% per year, how long will it take GDP to reach $26 trillion?

Labor productivity is

The best measure of standard living is

Which of the following best describes "potential GDP"

The issuer of a bond is a ______ and the purchaser of a bond is a ________.

The primary function of a nation's financial system is

Which of the following is not one of the key services provided by the financial system?

Public savings in the economy can be increased by

If in a closed economy real GDP is $30 billion, consumption is $20 billion and government purchases are $5 billion, what is total savings in the economy?

The demand for loanable funds has a _______ slope because the lower the interest rate, the ______ number of investment projects are profitable, and the ______ quantity of loanable funds demanded

If technological change increases the profitability of new investment for firms, then the _____ curve for loanable funds will shift to the ______ and the equilibrium real interest rate will _______

The loanable funds market is in equilibrium, as shown in the figure above. As a result of an increase in the government budget deficit, the _____ loanable funds will _______ thereby______ the equilibrium real interest rate and ______ the equilibrium quantity of loanable funds.

If the real interest rate is 4%, then savings is equal to $______ million, investment is equal to $_____, and the equilibrium quantity of loanable funds is equal to $____million

If the government simultaneously instituted a tax credit for investment spending and a tax increase on savings income, then which of the following will happen with certainty?

Which of the following policies/events results in an increase in the equilibrium quantity of savings?

Which of the following would increase public savings?

Which of the following policies/events results in a decrease in equilibrium quantity of savings?

Which of the following would you expect to increase the equilibrium interest rate?

The demand for loanable funds has a ______ slope because the lower the interest rate, the ____number of investment projects are profitable, and the ______ the quantity of loanable funds demanded.

Which of the following is consistent with the graph depicted above?

If the government simultaneously instituted a tax credit for investment spending and a tax decrease on savings income, then which of the following will happen with certainty?

The loanable funds market is in equilibrium. Technological breakthroughs which make capital more productive could result in which of the following combinations of the real interest rate and quantity of loanable funds at a new equilibrium

The level of savings comes from _______ curve. The level of investment spending comes from ______ curve

Potential GDP is

Increasing the amount of consumption spending and reducing the amount of savings_______ investment expenditures, and ________ long-run economic growth in economy.

In the loanable funds market, Event 1 is __________ and event II is ____________