Explain how changes in the proportion of contracts

Reference no: EM13695186

1) Explain how changes in the proportion of contracts that are indexed affect how a given change in monetary policy will affect economic activity.

2) Briefly explain what effect a reduction in the saving rate will have on growth.

3) Suppose there is an increase in the saving rate. Explain what effect this will have on output, output per worker, the rate of growth of output, and the rate of growth of output per worker.

Reference no: EM13695186

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