Suppose That a Country Has an Inflation Rate of About

question 67

Multiple Choice

Suppose that a country has an inflation rate of about 2 percent per year and a real growth rate of about 3 percent per year. Suppose also that it has nominal GDP of about 100 billion units of currency. What is the highest deficit it can have without raising the debt-to-income ratio?

• A)just under 2 billion units
• B)just under 3 billion units
• C)just under 5 billion units
• D)just under 6 billion units

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Definitions:

Economic Strike

A strike action undertaken by workers to achieve better wages, hours, and working conditions, as opposed to strikes for political reasons.

NLRA Section 8(a)(3)

Part of the National Labor Relations Act that outlines unfair labor practices by employers, particularly around discrimination against employees for union involvement.

Immediate Reinstatement

The rapid return of an individual to their previous position or status, often following an unfair dismissal or suspension.

Union Organizing Drive

A concerted effort by workers and/or union representatives to gain union representation in a workplace.