If the Nominal GDP Rises by 3 Percent and the Price

question 105

Multiple Choice

If the nominal GDP rises by 3 percent and the price level rises by 5 percent, then the real GDP ________ by ________ percent.

• A) rises; 8
• B) falls; 8
• C) rises; 2
• D) falls; 2
• E) None of these answers is correct.

---

Definitions:

Norris-LaGuardia Act

U.S. legislation passed in 1932 that restricts the power of courts to issue injunctions against nonviolent labor disputes.

Union Organizers

Individuals responsible for forming, expanding, and maintaining labor unions by rallying workers and facilitating the unionization process.

Right-To-Work Law

Legislation that prohibits union security agreements between companies and workers' unions, allowing individuals in the workforce to work without being compelled to join a union.

Union Shop

A place of employment where nonunion workers may be employed for a trial period of not more than 30 days, after which the nonunion workers must join the union or be discharged.