An increase in the saving rate permanently increases the growth rate of real GDP per person

In the case study discussed in the chapter, the electronics firm was losing money by selling its calculators at a price that was below average cost

a. True b. False Indicate whether the statement is true or false

Answer the following questions true (T) or false (F)

1. Since World War II, the Federal Reserve has not been involved in carrying out monetary policy. 2. Inflation rates during the years 1979-1981 were the highest the United States has ever experienced during peacetime. 3. The main goal of monetary policy for recent Fed Chairmen has been to maintain high employment in labor markets.