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McGill University
Economics (Arts)
ECON 295
Christopher Ragan

McGill UniversityEcon295Professor Paul DickinsonIntroductory Discussion QuestionsThese questions are for conferences in the week starting Monday January 12 Conference times and locations are on the WebCT site The questions are generally based on material in Chapter 19 This chapter contains introductory material which is not hard to understand so you are expected to read it and try these questions for yourself before going to conferencesexcept for the box on page 465 explaining how price indices are constructed That and more well do in lectures Also the Study Guide gives you a good way to check your understanding I hope that in this first week of conferences you will get to know your TAs and enjoy as well as learn NoteTFUTrue or False or UncertainPTD1 In lectures we were told that a very low savings rate in the US was one of the various factors that had helped to create the current problems Then we were told that an increase in savings was now making things worse Isnt this totally contradictoryIs this guy crazy Comment2 A couple of years ago a wellknown senior news analyst reported that Inflation is now rising at 5 percent per yearWhat did the analyst mean3 Lets assume that in 6 months time employment will have stopped falling and started to increase again If so this would mean that by July 2
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