If the nominal (market) interest rate is 8% and the real interest rate is 12%, then the expected inflation rate must equal?
Real interest rate = Nominal interest rate - Inflation rate
R = N - I
The Great Depression, from 1929 through 1939, inclusive
consisted of two deep troughs
During the Great Depression that ranged from approximately 1929 to 1939, the unemployment rate (of the U.S. labor force) reached the highest level in history of the U.S. What percent of the labor force was unemployed during the worst part of the Great Depression?
Between 1929 and 1933, real output in the U.S. fell by
33% (or 1/3)
According to the N.B.E.R., during what period in history did the U.S. economy move from year 2 to year 4 on the figure above?
Between August 1929 and March 1933
Between December 2007 and June 2009
Income taxes affect aggregate demand
indirectly by changing consumption
Since 1920, the N.B.E.R. (National Bureau of Economic Research) has tracked the business cycles in the U.S. economy that occurred between 1854 and the present time. How many (complete) business cycles occurred in the U.S. during the period 1854-2010?
Other things equal, the steeper the aggregate supply curve,
The smaller the recessionary effect of a decrease in aggregate demand.
The official unemployment rate is
the number of unemployed people divided by the size of the labor force.
Define gross investment on the part of the U.S. business sector as "new plant and equipment constructed plus any change in inventories of businesses. " During the Great Depression between 1929 and 1939
Gross investment for the U.S. was sometimes positive and at the same time net investment was negative.
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