Refer to Figure 8A.1. Capital deepening occurs as long as
A) total saving exceeds depreciation. B) the level of Y is increasing.
C) total saving and depreciation are equal. D) depreciation exceeds total saving.
Question 2
Cost-of-living adjustments are
A) changes in the basket of goods used in calculating the CPI.
B) automatic wage changes based on the CPI which are included in some union contracts.
C) quality measurements included in the calculation of the CPI.
D) averages of neighboring years' base prices used in constructing the CPI.
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