Macroeconomic Information for the Economy of Anchovy Is Given Below

question 36

Essay

Macroeconomic information for the economy of Anchovy is given below:
$$\begin{array} { | l r r } \hline & 2000 & 2001 \\\hline \text { Output (pizzas) } & 800 \mathrm { C } & 9000 \\\hline \text { Employment (workers) } & 70 \mathrm { C } & 800 \\\hline \text { Unemployed (workers) } & 70 & 100 \\\hline \text { Labour force (workers) } & 77 \mathrm { C } & 900 \\\hline \text { Price per pizza } & \$ 8.0 \mathrm { C } & \$ 9.00 \\\hline\end{array}$$ a. What was the growth rate of average labour productivity in Anchovy between 2000 and 2001?
b. What was the inflation rate in Anchovy between 2000 and 2001?
c. What was the unemployment rate in 2000? In 2001?

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Definitions:

Illusory Correlations

A cognitive error wherein a relationship is perceived between two variables, even when no such relationship exists.

Selective Attrition

Refers to the phenomenon where participants drop out of a study over time in a way that is not random, potentially skewing the results.

Demand Characteristics

Features of an experimental setting that lead participants to perceive and respond to what they believe are the expectations of the experimenter.

Falsifiable Theories

Theories or hypotheses that can be disproven or invalidated through empirical observation or experiment.