Refer to the table above. Suppose that the only variable input that the firm uses is labor. What is the wage paid to a worker in the firm?

The GDP price index can be interpreted as

A) (nominal GDP - real GDP) ÷ 100. B) (real GDP ÷ nominal GDP) × 100. C) (real GDP - nominal GDP) ÷ 100. D) (nominal GDP + real GDP) ÷ 100. E) (nominal GDP ÷ real GDP) × 100.

Assuming the economy is experiencing a recessionary gap, classical economists predict that: a. wages will remain fixed

b. monetary policy will sell government securities. c. higher wages will shift the short-run aggregate supply curve leftward. d. lower wages will shift the short-run aggregate supply curve rightward. e. none of the above.