If Real GDP Is $11,750 Billion and Aggregate Hours Are

question 98

Multiple Choice

If real GDP is $11,750 billion and aggregate hours are 175 billion, labor productivity equals

• A) $23.50 per hour.
• B) $52 per hour.
• C) $235 per hour.
• D) $67 per hour.

---

Definitions:

Economic Downturn

A period of reduced economic activity characterized by declines in spending and investment, often leading to recession.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through investments in a variety of assets, also known as unsystematic risk.

Arbitrage Pricing Model

A theory for asset pricing that takes into account multiple risk factors and the return of an asset, assuming no arbitrage opportunities.