Fred and Ed Each Have a Bag of Candy Containing

question 153

Multiple Choice

Fred and Ed each have a bag of candy containing a lemon drop (LD) , a cherry drop(CD) , and a lollipop (LP) . Each takes out a piece from their own bag and eats it. What are the possible pairs of candies eaten?

• A) LD-LD, CD-LD, LP-LP, LD-CD, CD-CD, LD-LP, LP-CD, CD-LP, LP-LD
• B) LD-LD, CD-LD, LP-LP, LD-LP, CD-CD, LD-LP, LP-CD, CD-LD, LP-LD
• C) CD-LD, LD-LP, LP-CD, LP-LP, LD-LD
• D) LD-CD, LD-CD, LD-CD, LD-LP, LD-LP, LD-LP, CD-LP, CD-LP, CD-LP

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Definitions:

Real GDP

Real Gross Domestic Product (GDP) measures the value of all finished goods and services produced within a country's borders, adjusted for inflation, within a specific time period.

Price Level

The averaged-out price for the total spectrum of goods and services in the economy.

Nominal Wage

The wage paid to workers stated in current money terms, without adjustment for inflation.

Real Wage

The purchasing power of an individual's income, accounting for inflation and reflecting how many goods and services can be bought.