The savings rate in Josiane’s country has been very low for many years. Describe how this has likely impacted the country’s growth rate. Provide brief examples.
What will be an ideal response?
but students should demonstrate an understanding of how higher rates of saving are linked to economic growth because saving means money is available for investment. Examples might include difficulty getting loans to start new businesses and a relative lack of innovation due to underinvestment in research and development.
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If a profit-maximizing firm in a competitive market discovers that, at its current level of production, price is greater than marginal cost, it should
a. shut down. b. reduce its output but continue operating. c. continue to produce at the current levels. d. increase its output.
Total production
A) always equals total expenditures. B) equals total expenditures in equilibrium. C) is always greater than total expenditures. D) is always less than total expenditures.
An increase in supply means that quantity supplied rises
A. at least one price. B. at a few prices. C. at most prices. D. at all prices.
Stagflation is the simultaneous occurrence of inflation and high unemployment.
Answer the following statement true (T) or false (F)