The Table Above Gives Data for the Nation of Pearl

question 115

Multiple Choice

$\begin{array} { c c c c } \hline \begin{array} { c } \text { Price level } \\\text { (GDP deflator) }\end{array} & \begin{array} { c } \text { Potential GDP } \\\text { (billions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Real GDP supplied } \\\text { (billions of 2005 dollars) }\end{array} & \begin{array} { c } \text { Real GDP demanded } \\\text { (billions of 2005 dollars) }\end{array} \\\hline 150 & 25 & 34 & 16 \\140 & 25 & 31 & 19 \\130 & 25 & 28 & 22 \\120 & 25 & 25 & 25 \\110 & 25 & 23 & 28 \\\hline\end{array}$
The table above gives data for the nation of Pearl, a small island in the South Pacific.
- When the economy is at full employment the price level is

• A)130.
• B)120.
• C)140.
• D)110.
• E)150.

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Definitions:

Compounded Monthly

Interest on a deposit or loan is calculated each month and added to the principal, increasing the amount on which future interest is computed.

Mortgage Loan

A loan used to purchase a real estate property, secured by the property itself.

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing vehicle for employees and the self-employed in Canada.

Compounded Monthly

Describes the process where interest is calculated and added to the principal amount of an investment or loan on a monthly basis.