Suppose the following situation exists for an economy: Kt+1/N = Kt/N. Given this information, we know that
A) saving per worker equals depreciation per worker in period t.
B) saving per worker is less than depreciation per worker in period t.
C) saving per worker is greater than depreciation per worker in period t.
D) the saving rate fell in period t.
E) steady state consumption is equal to the golden rule level of steady state consumption.
A
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The fractional banking system _____.
(A) Prevents excessive defaults. (B) Makes banking more secure. (C) Only works if there are a limited number of banks. (D) Ensures growth in the economy.
The company where Bruce worked decided to shut down one of its factories. Bruce was laid off as part of a permanent reduction in workforce in August 2008 . He was unemployed at the time of an employment survey in September 2008 but started working again in December 2008 . This is an example of _____
a. frictional unemployment b. seasonal unemployment c. cyclical unemployment d. structural unemployment