If the nominal GDP is 12,000 in 2005 and 15,000 in 2006, and if inflation is 10 between these years, then
a. employment fell between 2005 and 2006.
b. real GDP fell between 2005 and 2006.
c. real GDP rose between 2005 and 2006.
d. the economy experienced no growth between these years.
e. everyone is rich now than they were before.
Question 2
For a given level of the money wage, an increase in the price level will cause the
a. supply of labor to rise.
b. quantity of labor demanded to rise.
c. price of leisure to rise.
d. quantity of labor demanded to rise.
e. both b and d.
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