(a)Economic growth was weaker for 2019 than in 2018. As a result, demand for a firm's product decreases. Most firm take a number of steps to adjust costs and quantities supplied to the market.

Based on the list below, explain which actions can be done in the short run and which can be done in the long run.

i.Layoff 25 percent of the firm's existing employees.

ii.Declare bankruptcy and sell all of the firm's plant and equipment.

iii.Require management personnel to take a significant cut in pay.

iv.Layoff employees for 3 days each month.

v.Move to a smaller production facility.

(b)Your company plans to set-up a new branch overseas. In choosing which country to invest, your company decided to compare the economic well-being of citizens across several countries.

As an economist in your organization, explain to the CEO which of the following measures would be the most useful: nominal GDP, real GDP, or real GDP per capita.