A business cycle trough is a
A) small positive deviation from trend in real GDP.
B) relatively large positive deviation from trend in real GDP.
C) small negative deviation from trend in real GDP.
D) relatively large negative deviation from trend in real GDP.
D
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In the Solow growth model, an increase in the savings rate
A) raises steady state per capita output. B) raises the growth rate in aggregate output. C) must reduce per capita consumption. D) must reduce the standard of living.
Most economists and policy makers decided in 2007-2010 that reducing unemployment was the main national priority
a. True b. False Indicate whether the statement is true or false
Which of the following is most likely to be a major source of growth in per capita GDP?
a. a high investment/GDP ratio b. a high rate of inflation c. rapid population growth d. rapid growth in the money supply
The word that best describes the relationship between the required reserve ratio and the money supply is
A) direct. B) constant. C) inverse. D) roundabout.