the great depression, the golden age and the global financial cirsis Flashcards
The figure shows the unemployment rate (left axis) and the productivity growth (right axis) in the United States between 1914 and 2013. You can click on the figure to enlarge it.
Based on this information, which of the following statements is correct?
US performance in 1979-2008 was more moderate then during the 2 other boom periods, with higher average unemployment rate and lower average productivity growth
The figure shows the income share of the top 1% richest households in the United States between 1914 and 2013. You can click on the figure to enlarge it.
Based on this information, which of the following statements are correct?
1) inequality can rise or fall during recsions
2) the top 1% of US richest household recieved 1/5 of total income in 2010
Franklin Roosevelt became the US President in 1933. In the period after he became the president:
• The federal government deficit increased to -5.6% of GNP in 1934.
• The short-term nominal interest rate fell from 1.7% in 1933 to 0.75% in 1935.
• The CPI turned positive from -5.2% in 1933 to +3.5% in 1934.
• The US left the gold standard in April 1933.
• The New Deal was launched in 1933 and included proposals to increase federal government spending in a wide range of programmes and reforms to the banking system.
Which of the following statements is correct regarding the years immediately after Roosevelt became President?
a change in expectations of consumers on their future earnings, as a result of the new deal, would have contirbuted to the expansion in the economy AD
The diagram describes the movements in employment, profits and wages in the 1950s to 1960s using the labour market model. you can click on the diagram to enlarge it.
Which of the following statements is correct regarding this period?
continuing technological progress lead to to high expectations of suatained profit together with high wages negotiated by trade unions creating a circle of high investment, productivity growth, high wages and low unemployment
The figure is a graph of days on strike per 1,000 industrial workers (left axis) and the average wages relative to share prices (right axis) in advanced economies between 1950 and 2002. You can click on the figure to enlarge it.
Based on this information, which of the following statements is correct?
the postwar cooperation between employees and employers broke down in the late 60’s
The diagram describes the movements in employment, profits and wages in the 1950s to 1970s using the labour market model. You can click on the diagram to enlarge it.
Which of the following statements is correct regarding this period?
the collapse of the coperation in the late 60’s/early 70’s led to workers demanding higher wages which therefore led a rise in the wage curve
This is a graph of the unemployment rate and CPI in advanced economies between 1960 and 2013. You can click on the figure to enlarge it.
Based on this information, which of the following statements is correct?
stagflation occured by shifting up the phillips curve, due to high inflation expectations
The graph shows the household debt-to-income ratio and the house prices in the US between 1950 and 2014. You can click on the image to enlarge it.
Based on this information, which of the following statements is correct?
graph shows rapid increase of sub prime morgages before the financial cirsis
The figure shows bank leverage in the UK and the US between 1960 and 2013. You can click on the figure to enlarge it.
A bank’s leverage is defined as the ratio of the its total assets to its equity. Which of the following statements are correct?
1) leverage of 40 means only 2.5% of assests are funded by equity
2) leverage of 25 would mean assets fall 4% making the bank unable to pay debts
he figure depicts the US aggregate demand between Q2 2006 and Q4 2010.You can click on the figure to enlarge it.
Based on this information, which of the following statements is correct?
in the recsion, consumers stop buying houses and other goods, and businesses stopped investing
Which of the following statements are correct regarding fire sales in the housing market?
1) an underwater household is when the vakue of the house it owns is less then the morgage on the house
2) fire sales have a negative external effect on other owners of similar assets, by lowering the value of their assets
