Exhibit 25-3 -Suppose the GDP Deflator Is 100 in 2015 and 101

question 87

Essay

Exhibit 25-3 $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Inflation } \\\text { (percent) }\end{array} & \begin{array} { c } \text { Real GDP } \\\text { (billions of } \\\text { dollars) }\end{array} \\\hline 4.5 & 6,700 \\\hline 3.5 & 6,800 \\\hline 2.5 & 6,900 \\\hline 1.5 & 7,000 \\\hline 5 & 7,100 \\\hline\end{array}$$
-Suppose the GDP deflator is 100 in 2015 and 101 in 2016.
(A) Suppose the econamy is at potential GDP in 2015 ant 2016 . What is the rate of inflation in 2016 ?
(B) Suppose instead that real GDP is abave patential GDP in 2016. Haw is the adjustrent back ta potential made in this situation?

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Definitions:

Hygiene Factors

in workplace motivation theory, are elements that, if absent or inadequate, can cause job dissatisfaction, but their presence does not necessarily lead to high job satisfaction.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance and overall well-being.

Hygiene Factors

Elements related to job conditions that can lead to dissatisfaction if absent, but do not necessarily motivate employees when present, as per Herzberg's Two-Factor Theory.

Job Dissatisfaction

The feeling of unhappiness or discontent with one's job, stemming from various factors such as working conditions, pay, or lack of fulfillment.