Econ 8-10

Keynesian

According to​ Keynes, _______.

When unemployment benefits​ increase, the​ ______.

According to classical​ macroeconomics, ______.

Classical macroeconomics predicted that the Great Depression​ _______.

John Maynard​ Keynes; 1936

too little private spending is the cause of depression and recession

Classical

Classical macroeconomics​ _______.

The time spent on job search falls when​ ______.

With low unemployment​ benefits, the opportunity cost of job search is​ ______, so a person is likely to​ ______.

The amount of​ job-search unemployment increases when​ ______.

Job rationing creates a​ ______.

U.S. potential GDP is the value of the goods and services produced in the United States​ _______.

The natural unemployment rate​ _______.

What were the sources of labor productivity growth in the U.S. economy during the fifty years since​ 1960? How did the 1960s differ from the more recent​ decades?

Comparing the 1960s to the more recent​ decades, labor productivity growth​ _______ than in subsequent decades.

Sustained increases in real GDP per person depend on

Labor productivity growth depends on

If the stock of physical capital​ (that is​ machinery, equipment,​ etc.) and human capital remain the same and the population​ increases, then

A reason for an increase in labor productivity growth is

Increases in human capital can come

Growth in physical capital depends most directly upon the

Classical growth theory​ ______

What does classical growth theory say will eventually end economic​ growth?

The​ ______ growth theory best corresponds to the explanation given by Mr. Greenspan because Mr.​ Greenspan's explanation shows​ ______.

According to classical growth​ theory, when real GDP per person​ ______, the population grows.

According to​ Malthusians, _______.

Which of the following plays a role in new growth​ theory?

According to new growth​ theory, ______.

The preconditions for economic growth are​ ______.

Economic freedom is crucial for achieving economic growth because​ ______.

Property rights encourage economic growth by​ ______.

High taxes might hold back economic growth because​ ______. U.S. tax laws that​ ______ would encourage faster economic growth.

If governments in Africa​ _______ they will encourage economic growth and raise the standard of living.

Is economic freedom the same as​ democracy?

​______ is an example of a place where there is economic freedom and rapid economic growth but not democracy.

Markets are a necessary precondition for economic growth because​ ______.

Other things remaining the​ same, a country or region that adopts free international trade​ (for example, Hong​ Kong) has a faster economic growth rate than a country that restricts international trade​ (for example,​ Myanmar) because free international trade​ ______.

The three types of financial markets are​ ______.

Financial capital is​ _______.

The interest rate on a financial asset​ ______.

The cost of capital for corporations is higher than near zero because​ ______.

A negative saving rate occurs if​ ______.

A negative saving rate might be something to worry about because​ ______. U.S. saving might be increased by​ ______.

The U.S. saving rate might have increased because​ ______. The increase in the saving rate will​ ______ the supply of loanable funds.

Loanable funds are used to finance​ ______.

Loanable funds come from ​ ______.

Consider household​ saving, and then choose the correct statement.

An increase in expected​ profit, other things remaining the​ same, ______ the equilibrium real interest rate and​ ______ the equilibrium quantity of loanable funds.

A decrease in wealth will​ ______ the supply of loanable funds and​ ______.

The supply of loanable funds increases when disposable​ income______ or wealth​ ______.

An increase in disposable​ income, other things remaining the​ same, ______ the equilibrium real interest rate and​ ______ the equilibrium quantity of loanable funds.

Over​ time, ______

An increase in disposable income will​ ______ the supply of loanable funds and the adoption of new technology will​ ______ the demand for loanable funds. The equilibrium real interest rate​ ______.

In an​ expansion, the expected profit rate​ ______ and, other things remaining the​ same, the demand for loanable funds​ ______.

A large federal deficit​ _______.

An increase in government expenditure​ _______.

The IMF required countries with large​ deficits, like those in Eastern​ Europe, to cut spending rather than increase it because high government deficits​ ______ in these​ countries, which​ ______.

A government budget surplus​ ______ the real interest rate and​ ______ investment.

A government budget deficit ​ ______ the real interest rate and​ ______ investment.

A government budget surplus​ _______.

Crowding out occurs when​ _______.

An increase in the government budget deficit​ _______.

During the global financial crisis of​ 2007-2008, ______ the demand for loanable funds and​ ______ the supply of loanable funds.

The stock market boom​ _______ saving and​ _______ the quantity of loanable funds demanded.