Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. Between 2012 and 2013, which grew more rapidly, nominal GDP or real GDP?
A) Real GDP grew more rapidly.
B) Both grew at the same rate.
C) Nominal GDP grew more rapidly.
D) Because real GDP and nominal GDP use different prices, it is not possible to determine which grew most rapidly.
E) More information is needed to determine which grew more rapidly.
C
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At a fixed level of worker productivity, ________
A) lower wages reduce quantity of labor demanded B) higher wages reduce cost of production C) higher wages reduce profits D) lower wages increase quantity of labor supplied
The employment ratio is always ________ than labor force participation, because only the latter ________
A) larger; omits discouraged workers B) smaller; includes the unemployed C) smaller; omits people too young to work D) larger; includes people looking for work
When the output of an economy exceeds the economy's full-employment capacity,
a. aggregate supply will increase until the economy can produce the output at the existing price level. b. the actual rate of unemployment will be less than the natural rate. c. wage rates and resource prices will tend to fall. d. interest rates will decline and help direct the economy back to full employment.
In the table at? right, how many workers are employed when marginal product reaches its? maximum?
A. 1
B. 3
C. 4
D. 2