The economy is at full employment when all unemployment is ________

Assuming there are no capital gains, a nation's wealth at the start of a year is equal to the wealth at the start of the previous year plus

A) income. B) nothing because wealth does not change from one year to the next. C) income minus saving during the year. D) saving during the year. E) saving minus depreciation during the year.

The U.S. personal savings rate for the first quarter of 2012 dropped to its lowest level since the start of the recession. Americans stashed away 3.6 percent of personal income in the first quarter, down from 4

2 percent in the fourth quarter and a near-term peak of 6.2 percent in the second quarter of 2009. Which of the following could explain this drop in savings? A) a decrease in wealth from a fall in stock prices B) a rise in the real interest rate C) an increase in disposable income as the job market recovers D) a rise in consumer confidence that their incomes will be higher in the future