Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 24, Problem 9SPPA
To determine

To find:

The economy that has greater potential GDP, has higher real wage rate and has the higher natural unemployment rate.

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You looked at many economic indicators, including data regarding unemployment, GDP, housing starts, and consumption spending.  Which of the following economic indicators NOT including those four would you likely see to support this analysis of the economy?     The consumer confidence index is likely rising    Inflation (the general price level of goods and services) is likely increasing   Stock share prices are likely decreasing   New businesses are likely being opened
Assume that you are told a country’s nominal GDP decreased from one year to the next.  All of the following could have occurred, except one.  Which one?    Output increased and the price level decreased. Output decreased and the price level decreased. Output decreased and the price level remained constant. Output increased and the price level increased. Output remained constant and the price level decreased. Output decreased and the price level increased.
We consider two countries A and B in a given period. It is observed that in the A and B the average growth of labour is equal (2%) according to employment statistics but the average GDP growth rates in A and B are respectively 5% and 4%. What are the alternative explanations of this GDP growth rate differences?
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