Real GDP Would Increase by 3 Percent If Nominal GDP

question 38

Multiple Choice

Real GDP would increase by 3 percent if nominal GDP increased by:

• A)1 percent and inflation increased by 2 percent.
• B)6 percent and inflation increased by 2 percent.
• C)2 percent and inflation increased by 1.5 percent.
• D)5 percent and inflation increased by 2 percent.

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Definitions:

Allocating Bonus

The distribution of financial rewards to employees, over and above their regular pay, based on performance criteria, company profitability, or other achievement metrics.

Goal-Sharing Bonus

A bonus system where employees receive rewards if the company achieves certain predefined goals, promoting teamwork and alignment with business objectives.

Salary Levels

The amounts of pay designated for various job positions within an organization, often classified into ranges or grades.

Compensation Mix

The variety of compensation components, such as salary, bonuses, stock options, and benefits, used by an employer to reward employees.