Real GDP Is $700 Billion, Average Hours Worked Per Week

question 140

Multiple Choice

Real GDP is $700 billion, average hours worked per week is 42 and aggregate hours 150 billion hours. What is the economy's labor productivity?

• A)$3.75 per hour
• B)$16.67 per hour
• C)$46.67 per hour
• D)$4.50 per hour
• E)$1.80 per hour

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Definitions:

Nominal

Nominal values refer to monetary values or economic statistics not adjusted for inflation, reflecting their face value.

Real Interest Rate

The interest rate corrected for the effects of inflation.

Price Level

A measure of the average prices of goods and services in an economy at a given time period.

Real Wealth

The value of an individual's or entity's assets, taking into account the effects of inflation on purchasing power.