Suppose that the U.S. undertakes a policy to increase its saving rate. This policy will likely
a. have no impact on the growth rate of real GDP per person.
b. decrease the growth of real GDP per person for a few years.
c. increase the growth of real GDP per person for several decades.
d. permanently increase the growth rate of real GDP per person.
c
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You have noticed that there is a persistent shortage of teachers in an inner-city school district in your state. Based on this observation, you suspect that:
A. the wage for teachers in that district is lower than the equilibrium wage. B. the demand for teachers in the inner-city school district is too low. C. there is an excess supply of teachers in other districts. D. the wage for teachers in that district is higher than the wage in other districts.
If 1,000 Mexican pesos could buy $1.00 U.S. in 2006 and $0.87 U.S. in 2010, it implies that _____
a. the dollar depreciated against the peso b. the peso appreciated against the dollar c. the dollar strengthened against the peso d. the peso strengthened against the dollar
People living in the town of Norwich, England, have begun a system of trade called the LETS, which allows people to enter into exchanges without using the British pound. Members offer a particular service, such as babysitting, gardening, and plumbing for which they get Croy credits. They can then use these Croys to buy services from other people. Does this system represent what economists call barter?
A. No, to be true barter, the exchange rate between the Croy and the British pound must be flexible. B. Yes, because the Croy is not real money but just a bookkeeping account. C. Yes, because it does not use the true money, the British pound. D. No, this group has merely replaced one money, the pound, with a less flexible medium of exchange that they call the Croy.
Which of the following goods' prices are not considered when calculating core inflation?
A. entertainment B. clothing C. housing D. food