Answer the next question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.YearUnits of OutputPrice per Unit18$22103315441855206If year 2 is the base year, then real GDP in year 5 is ________.
A. $90
B. $60
C. $30
D. $120
Answer: B
You might also like to view...
The aggregate production function shows that an economy increases its real GDP in the short run by
A) developing new technologies. B) increasing its physical capital stock. C) using more labor. D) exploring for new deposits of natural resources.
The level of capital per person would increase if
A) the average saving rate were higher. B) the output-to-capital ratio increased. C) the depreciation rate increased. D) Both A and B.
Which of the following is correct?
a. Workers determine the supply of labor, and firms determine the demand for labor. b. Workers determine the demand for labor, and firms determine the supply of labor. c. The labor market is a single market for all different types of workers. d. The price of the product produced by labor adjusts to balance the supply of labor and the demand for labor.
Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded increased by 10 percent. We can conclude that:
A. the labor demand curve must have independently shifted to the right. B. labor demand is highly elastic. C. the coefficient of labor demand elasticity is less than 1. D. labor demand is unit-elastic.