Question

Please explain them

Suppose Nominal GDP in Atlantis is $60 in the year 1and $78 in the year 2. Suppose the GDP Deflator in Atlantis is 120 in the year 1 and 156 in the year 2.

What is the inflation rate in Atlantis between year 1 and 2?

a)

10%

b)

20%

c)

30%

d)

40%

Approximately, what is the real growth rate in Atlantis between year 1 and 2?

a)

0%

b)

10%

c)

20%

d)

30%

Which of the following is true about the market

for factors of production?

a)

households are the consumers in the market for factors of production.

b)

final products like televisions trade hands in the market for factors of production.

c)

revenue is received by businesses in the market for factors of production.

d)

wages, rent, and profit are the payments for factors of production.

If the price level rises, then

a)

the inflation rate must be a positive number.

b)

the real growth rate of GDP must be a positive number.

c)

both a) and b) are correct.

d)

neither a) nor b) are correct.

Answer 1