Suppose the saving rate is initially greater than the golden rule saving rate. We know with certainty that a reduction in the saving rate will cause
A) a reduction in the rate of growth in the long run.
B) a reduction in output per worker.
C) a reduction in consumption per worker.
D) all of the above
E) none of the above
B
Economics
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When the oil-producing countries of the Middle East meet to set prices and output levels, this is an example of
a. monopoly behavior b. profit sharing c. market distribution d. explicit collusion e. tacit collusion
Economics
Those who prefer that the Fed react to negative supply shocks by tolerating higher rates of inflation as a means of moderating a recession are called
a. inflation doves b. inflation hawks c. monetarists d. Keynesians e. hard headed and soft hearted
Economics