Given That a Country's Real Output Has Increased,in Which of the Following

question 49

Multiple Choice

Given that a country's real output has increased,in which of the following cases can we be sure that its productivity also has increased?

• A)The total number of hours worked rose.
• B)The total number of hours worked stayed the same.
• C)The total number of hours worked fell.
• D)Both b and c are correct.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Convertible

A term often used in finance to describe securities, like bonds or preferred stocks, that can be converted into a predetermined number of another type, usually common stock, at the holder's option.

Callable

Callable refers to a provision in certain bonds or securities whereby the issuer has the right to redeem the instrument before its maturity date.

Sinking Fund

A reserve fund established by an issuer of a bond to repay the principal amount of the bond at maturity, often through periodic payments.