The Table Below Provides Macroeconomic Data for a Hypothetical Economy

question 12

Multiple Choice

The table below provides macroeconomic data for a hypothetical economy.Dollar amounts are all in constant-dollar terms.
TABLE 19-1
-Refer to Table 19-1.In the year 2012,it is probably the case that workers are ________ and factories are ________.

• A)facing cyclical unemployment; facing temporary shut downs
• B)working longer than normal hours; facing temporary shutdowns
• C)experiencing zero unemployment; operating extra shifts
• D)experiencing zero unemployment; operating beyond their normal capacity
• E)working longer than normal hours; operating beyond their normal capacity

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Definitions:

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, adjusting for the cost of living and inflation rates to determine relative currency values.

Exchange Rates

The value of one currency for the purpose of conversion to another.

Real Income

The income of an individual or group after adjusting for inflation, representing the actual purchasing power.

Market Size

The total volume of sales or potential sales for a particular product or service in a specific market.