The table above gives data for the nation of Pearl, a small island in the South Pacific. If a supply shock decreases the quantity of real GDP supplied by $6 billion at each price level, the new equilibrium real GDP is

What stage of the business cycle would be most appropriate to describe the years from 1929 to 1933?

(A) A contraction (B) A peak (C) An expansion (D) A trough

Over the past year, output grew 5%, capital grew 5%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.5 and 0.5, respectively, how much did productivity grow?

A) 0.5% B) 1.0% C) 1.5% D) 2.0%