The level of savings in an economy can be:
A. an important determinant of future productivity.
B. a source of funding for physical capital.
C. an important determinant of capital investment.
D. All of these are true.
Answer: D
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The best example of a cyclically unemployed individual is
A) Charles who lost his job as a real estate salesperson when the housing market went soft because of a recession. B) Alice who quit her job to enter college. C) Mary who lost her job in the textile industry following a decrease in the tariff on textiles. D) Bob who has just graduated from college and is entering the labor market.
Refer to the accompanying figure.
Starting from long-run equilibrium at point C, an adverse inflation shock that increases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ creating ________ gap.
A. B; a recessionary B. A; a recessionary C. B; an expansionary D. A; an expansionary
The delivery of first-class mail by the U.S. Postal Service is an example of
A) a monopoly. B) perfect competition because consumers have access to other methods of written communication; for example, email and text messaging. C) monopolistic competition, because mail delivery is a differentiated product provided by many firms. D) an oligopoly because a few other firms provide delivery of letters and packages.
The key variable in determining changes in a country's standard of living is the:
A. inflation rate. B. interest rate. C. long-run rate of economic growth. D. unemployment rate.