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  3. Liberty ECON 214 Exam 2 Answers Complete Solutions

Contents

  • 1 Liberty ECON 214 Exam 2 Answers Complete Solutions
      • 1.0.1 Question 1
      • 1.0.2 Question 2
      • 1.0.3 Question 3
      • 1.0.4 Question 4
      • 1.0.5 Question 5
      • 1.0.6 Question 6
      • 1.0.7 Question 7
    • 1.1 STATUS
      • 1.1.1 Question 8
      • 1.1.2 Question 9
      • 1.1.3 Question 10
      • 1.1.4 Question 16
      • 1.1.5 Question 17
      • 1.1.6 Question 18
      • 1.1.7 Question 21
      • 1.1.8 Question 22
      • 1.1.9 Question 23
      • 1.1.10 Question 24
      • 1.1.11 Question 33
      • 1.1.12 Question 34
      • 1.1.13 Question 35
      • 1.1.14 Question 39
      • 1.1.15 Question 40

Liberty ECON 214 Exam 2 Answers Complete Solutions

 

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Question 1

From 2009 to 2010 per capita real gross domestic product (GDP) in the United States grew by 1.8%. At that rate, according to the Rule of 70, in roughly how many years will per capita real GDP double?

Question 2

How many recessions have there been in the United States since 1982?

Question 3

When U.S. aggregate demand and long­run aggregate supply decreased during the Great Recession:

Question 4

Refer to the following figure to answer the questions that follow. Based on the figure, starting at point A, if there is an increase in government spending, then in the short run we would move to point __________ and in the long run to point __________.

Question 5

The long­run aggregate supply curve is:

Question 6

From 2006 to 2010, per capita real gross domestic product (GDP) in Poland grew an average of 4.71% per year. At that rate, according to the Rule of 70, in roughly how many years will the Polish economy double in size?

Question 7

An increase in the general price level will lead to:

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Question 8

Keynesian economists believe that government intervention in the economy is necessary because:

Question 9

Which of the following would cause an upward movement along the aggregate demand curve?

Question 10

One of the reasons why the Great Depression was so severe is that:

Question 16

According to classical economists, changes in aggregate demand have little effect on the overall economy, and therefore:

Question 17

A(n) _____________ in capital goods should ____________ worker productivity.

Question 18

During the Great Depression, the U.S. aggregate demand curve shifted to the left, in part, because:

Question 21

When inflation pushes up prices in the economy, input prices are _________ and revenues _________ in the short run.

Question 22

Refer to the following figure to answer the questions that follow. Based on the figure, which of the following would cause the short­run aggregate supply curve to shift from SRAS1 to SRAS2?

Question 23

From 2006 to 2010, per capita real gross domestic product (GDP) in Japan grew an average of 0.46% per year. At that rate, according to the Rule of 70, in roughly how many years will the Japanese economy double in size?

Question 24

Suppose there is a surge in stock market values. In the short run, we would expect the price level to __________ and the unemployment rate to __________.

Question 33

Per capita real gross domestic product (GDP) is higher in the United States than in Mexico. Based on that, we could predict the United States to have a higher rate of ___________ and a lower rate of ___________.

Question 34

Residents of poor countries tend to have higher rates of infant mortality because:

Question 35

From 2006 to 2010, per capita real gross domestic product (GDP) in China grew an average of 10.62% per year. At that rate, according to the Rule of 70, in roughly how many years will Chinese per capita real GDP double in size, beginning in 2006?

Question 39

Which of the following factors is negatively correlated with economic growth?

Question 40

When an economy experiences economic growth:

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