All other things unchanged, higher saving rates contribute to higher rates of capital formation.

Quantitative evidence from Fishlow, Fogel and Mercer indicates that

a. antebellum railroads were built ahead of demand, but post-bellum transcontinentals were not. b. post-bellum transcontinentals were built ahead of demand, but antebellum railroads were not. c. both antebellum railroads and post-bellum railroads were built ahead of demand. d. antebellum railroads were not built ahead of demand, but the evidence on post-bellum railroads is mixed.

Short-run aggregate supply: a. is a fixed volume of output

b. reflects how much RGDP suppliers are willing and able to produce at different price levels. c. shifts only when the LRAS shifts. d. is not affected at all by the price level.