The NAICS Uses a Five Digit Hierarchical Coding System to Classify

question 25

True/False

The NAICS uses a five digit hierarchical coding system to classify all economic activity into 20 industry sectors,providing greater flexibility relative to SIC codes.A total of 15 of these sectors are devoted to services-producing sectors,compared to only 5 that are mainly goods-producing sectors.NAICS allows for identification of 1,170 industries.It includes 9 new service sectors and 250 new service industries.

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Definitions:

Expansionary Gap

A situation where the actual output in an economy is greater than the potential output due to high demand.

Nominal Wages

The amount of money an employee is paid before adjustments for inflation, reflecting the current value of money.

Real Wages

The purchasing power of wages, adjusted for inflation, showing how many goods and services can be bought with a unit of labor.

Phillips Curve

An economic theory suggesting an inverse relationship between the rate of inflation and the rate of unemployment within an economy.