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1. True or false? a) GDP per capita is a measure of economic prosperity. b) High...

1. True or false? a) GDP per capita is a measure of economic prosperity. b) High growth rates in GDP per capita can be accompanied by high inflation. c) Nominal wages are adjusted for inflation, real wages are not. d) A mismatch of skills generally results from cyclical unemployment. e) The Phillips curve suggests negative relationship between inflation and GDP f) A trade deficit is acceptable in the short run, but is troublesome in the long run.

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Answer #1

a) True
If GDP is used on per -capita basis or for the whole nation , it is the most popular measure of economic prosperity.

b)True

It is always seen that GDP and Inflation go hand in hand

c)False
Real wages are adjusted for inflation while nominal wages are not.

d)TRUE
Cyclical unemployment can result in structural unemployment i.e unemploymen caused by mismatch of skills.

e)FALSE

It suggests a positive relationship between inflation and GDP

f)TRUE

Trade deficits can be troublesome in the long run as the debt will keep piling up.

I hope that this helps.If you have any queries , put it in the comments.I will modify/edit my answer accordingly.

Have a nice day :)


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