[The following scenario applies to the next two questions.] In 20X2, real GDP = 783, the price level = 114, and the nominal wage rate= 35.48 / hour In 20X3, real GDP = 816, the price level = 161, and the nominal wage rate= 42.39 / hour The real interest rate, inflation rate, and bank transaction costs do not change, and the real demand for money is proportional to real GDP. Question 1.8: Nominal money supply What is the percentage change in the nominal money supply from 20X2 to 20X3? A. 42.93% B. 44.35% C. 45.76% D. 47.18% E. 48.60% Question 1.9: Marginal product of labor What is the percentage change in the marginal product of labor from 20X2 to 20X3? A. -15.40% B. -15.86% C. -16.33% D. -16.79% E. -17.25%

[The following scenario applies to the next two questions.] In 20X2, real GDP = 783, the price level = 114, and the nominal wage rate= 35.48 / hour In 20X3, real GDP = 816, the price level = 161, and the nominal wage rate= 42.39 / hour The real interest rate, inflation rate, and bank transaction costs do not change, and the real demand for money is proportional to real GDP. Question 1.8: Nominal money supply What is the percentage change in the nominal money supply from 20X2 to 20X3? A. 42.93% B. 44.35% C. 45.76% D. 47.18% E. 48.60% Question 1.9: Marginal product of labor What is the percentage change in the marginal product of labor from 20X2 to 20X3? A. -15.40% B. -15.86% C. -16.33% D. -16.79% E. -17.25%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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