Which of the Following Is the Primary Source of Rapid

question 13

Multiple Choice

Which of the following is the primary source of rapid growth in the real earnings of workers?

• A) strong unions
• B) government regulation of labor markets
• C) rapid growth in worker productivity
• D) increases in the minimum wage

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Definitions:

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to convert nominal GDP into real GDP.

Deflation

A decrease in the general price level of goods and services, often indicating reduced consumer demand or excess supply.

Inflation

A general increase in prices and fall in the purchasing value of money over time.

Real GDP

Real Gross Domestic Product, indicating the total value of all produced goods and services in an economy for a year, adjusted to account for inflation, thereby showing true economic value.