The Value of Output Was $1,000 Billion in Northland and $2,000

question 72

Multiple Choice

The value of output was $1,000 billion in Northland and $2,000 billion in Southland. The population of Northland was 50 million and the population of Southland was 120 million. There were 30 million employed workers in Northland and 75 million employed workers in Southland. Average labor productivity was higher in ________ and the standard of living was ________.

• A)Northland; the same in both countries
• B)Northland; higher in Northland
• C)Southland; the same in both countries
• D)Southland; higher in Southland

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Definitions:

Stagflation

An economic condition characterized by slow economic growth and high unemployment coupled with high inflation.

Economic Stagnation

A prolonged period of little or no growth in the economy, characterized by high unemployment, stagnant wages, and low levels of investment and consumer spending.

Unemployment

The condition of not having a job despite actively seeking work, often used as an economic indicator reflecting the health of an economy.

Foreign Policy

A government's strategy in dealing with other nations, defining how it interacts diplomatically, economically, and militarily with countries around the world.