Eliminating frictional unemployment would be good for the economy

A bank manager tells you that she doesn't create money. She just lends the money that people deposit. Explain why she's wrong

What will be an ideal response?

Initially, the economy is at point B on Figure 10-2 above. According to the Solow growth model, a dramatic decrease in the rate of saving after complete adjustment shifts the economy from ________

A) B to H, increasing output per capita B) B to C, increasing output and capital per capita C) B to D, decreasing the output and capital per capita in the long run D) B to E, decreasing output per capita but holding per capita capital constant