9.

Which of the following best characterises the economic growth for OECD countries since the mid-1970s?

Select one:

a.

Growth has come to a complete halt.

b.

Growth has not changed since the 1950s and 1960s.

c.

Growth has increased slightly.

d.

Growth slowed down.

e.

Growth has increased dramatically.

10.

Since 1950, which of the following countries has had the lowest saving rate?

Select one:

a.

France

b.

The saving rate has been approximately the same for all three countries.

c.

United States

d.

Japan

11.

Suppose the saving rate is initially less than the golden rule saving rate. We know with certainty that a reduction in the saving rate will cause:

Select one:

a.

a reduction in consumption per worker.

b.

a reduction in the capital-labour ratio.

c.

a reduction in output per worker.

d.

All of the above.

e.

None of the above.

12.

In order to gradually (say, over 6 years) and permanently decrease the rate of inflation, the interest rate must:

Select one:

a.

initially increase, then steadily decrease until the inflation target is met, and then decrease one last time.

b.

sharply decrease in the first year, and then remain constant.

c.

steadily decrease year after year.

d.

first increase, and then steadily decrease.

e.

increase and decrease in alternate years until the inflation target is met.

13.

Suppose policymakers underestimate the natural rate of unemployment. In a situation like this, policymakers might implement a policy that:

Select one:

a.

results in deflation.

b.

results in steadily rising inflation.

c.

both A and B.

d.

attempts to maintain output below the natural level of output