A price surprise is equal to the expected price level minus the actual price level.

The base year is 2010. A country only produces MP3 players. The price of an MP3 player in 2008 was $50. The price of an MP3 player was $30 in 2010. The quantity of MP3 players produced in 2008 was 10,000 units and in 2010 was 20,000 units

Nominal GDP in 2010 equals A) $500,000. B) $200,000. C) $1,000,000. D) $600,000. E) an amount that cannot be determined without information about real GDP in 2010.

The marginal product of labor is always ________ and it ________ as the labor stock increases

A) positive; increases B) positive; decreases C) negative; increases D) negative; decreases