In the neoclassical model, an increase in the savings rate
a. causes a more than proportionate increase in the capital to labor ratio.
b. results in a less than proportionate increase in the capital to labor ratio.
c. results in a proportionate increase in the growth rate of output.
d. None of the above
B
Economics
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The GDP price index equals
i. nominal GDP divided by real GDP multiplied by 100. ii. a measure of the price level. iii. an average of current prices expressed as a percentage of base-year prices. A) i, ii, and iii B) iii only C) ii and iii D) i only E) i and ii
Economics
The Monetarists advocate the monetary rule in order to stabilize the business cycle which states that the money supply should be decreased by a constant rate year after year
a. True b. False Indicate whether the statement is true or false
Economics