1.In a specified year, nominal gross domestic product grew by 12 percent and real gross domestic product grew by 5 percent.What would be the inflation rate for this year?

7%

-7%

8%

17%

2.Which of the following could result in simultaneous increases in unemployment and inflation?Which of the following could result in simultaneous increases in unemployment and inflation?

An increase in the overall level of productivity

A decrease in government spending

A decrease in the money supply

An increase in the expectations of future inflation

3. Consider the following table indicating the number of labor hours required in Countries T and J to produce one unit of clothing or one unit of food. Country Clothing Food T 60 hours 30 hours J 30 hours 20 hours Which of the following statements is correct? J has a comparative advantage in both clothing and food production T has a comparative advantage in both clothing and food production J has a comparative advantage in clothing production, while T has a comparative advantage in too-cl production T has a comparative advantage in clothing production. while J has a comparative advantage in lood production 5. The following table shows the relationship between the number of workers and steel output {in metric tons per day]. Number 01 workers Total output of steel 0 o 1 25 2 44 3 60 4 70 5 75 How many workers would the steel company!r hire if the price of steel was priced at $5 per metric ton and the wage rate was $40 per day? 2 3