Exam 2 Sample Questions With Verified Answers

an increase in the federal government surplus {Ans: Which of the following will increase investment spending in the economy, holding everything else constant?}amount of unemployment that the economy normally experiences. {Ans: The natural rate of unemployment is the}have become less severe than before 1950. {Ans: Since 1950, recessions in the United States}the equilibrium interest rate to fall and the equilibrium quantity of loanable funds to rise. {Ans: Suppose government expenditures on goods and services and net taxes both decrease, and expenditures fall by more than net taxes. The effects of these changes on the budget deficit cause}technology and the quantity of capital per hour worked {Ans: What two factors are the keys to determining labor productivity?}financial instability {Ans: Most economists believe that the return of ________ during the 2007-2009 recession is a key reason why the recession was so severe.}