In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Current unemployment rate and labor force participation rate
b. Annual inflation rate during the past year
c. Current real exchange rate
d. Percentage change in nominal GDP during the past year
e. Current nominal exchange rate
Question 2
Pick the economic variable that is countercyclical.
a. Investment
b. Government transfer payments
c. Prices
d. Consumption
e. Nominal interest rates
