Consider the Following Data That Gives the Quantity Produced and Unit

question 70

Multiple Choice

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the next five questions: Assume that the base year is 2012.

-Assuming the price level increased,real GDP is greater than nominal GDP if the current year is ________ the base year,and real GDP is less than nominal GDP if the current year is ________ the base year.

• A) before; before
• B) before; after
• C) after; after
• D) after; before
• E) equal to; equal to

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Definitions:

Economists

Experts in economics who analyze and interpret economic trends, data, and policies to understand and predict financial and market behaviors.

Minimum Wage

The lowest legal hourly rate that workers can be paid by their employers, set to ensure a minimum standard of living for workers.

Skill

The ability to perform tasks and solve problems due to knowledge, practice, aptitude, and experience.

Binding Minimum Wage

This is a minimum wage set above the equilibrium wage rate, leading to a surplus of labor supply and a shortage of jobs at that wage level.