Suppose Mexico Increases Its Saving Rate

question 116

Multiple Choice

Suppose Mexico increases its saving rate. Which of the following will happen in the long run?

• A)The growth rates of productivity and real GDP per person will increase.
• B)Productivity and real GDP per person will increase.
• C)The growth rate of productivity will increase, and real GDP per person will increase.
• D)Productivity will increase, and the growth rate of real GDP per person will increase.

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Definitions:

Mandatory Items

Requirements or objects that are obligatory and must be included or complied with.

Bargaining Session

A scheduled meeting between parties, such as employers and employees, to negotiate terms and conditions, often related to employment or trade agreements.

Contract Negotiations

The process of discussing terms and details to reach a mutual agreement in a contract, often involving aspects like salary, work conditions, and other employment terms.

Congress of Industrial Organizations

A federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955, when it merged with the American Federation of Labor.