Question

If you observed the equilibrium wage rate decreasing while equilibrium employment increased, which of the following would be a possible explanation?

Group of answer choices

there has been an increase in labor productivity

the unemployment rate has increased

the rate of population growth has increased

the labor force participation rate has decreased

32. GDP increased from $16.48 trillion to $17.46 trillion. What was the growth rate of GDP? Enter a number rounded to two decimal places. Do not enter any other characters.

33.

A country has nominal GDP equal to $209.13 billion in 2018. The GDP deflator in 2018 has a value of 114.82. What was the value of real GDP, in billions of dollars.

Round to two decimal places. If your answer is 3.2 billion then just enter 3.2.

Answer 1

Q1 - If the equilibrium wage rate decreases while equilibrium employment increases, it woudl happen becuase the labor supply has gone up (supply curve has shifted rightwards). Out of the options given, "the rate of population growth has increased" is the one that would lead to an increase in supply and is the right answer

Q32. Growth rate of GDP = $17.46/16.48 - 1 = 5.95%

Q33. We know that real GDP = Nominal GDP * 100 / GDP deflator

Hence in this case, real GDP = $209.13 billion * 100 / 114.82

= $ 182.14 billion