To adjust nominal GDP for a given year to obtain real GDP, it is necessary to divide nominal GDP by the price index (expressed in hundredths) for that year.

In 2010, high-income families (the top 20 percent) in the United States earned approximately ____ percent of the total before-tax income

a. 34 b. 48 c. 62 d. 79

A person who believes the economy is self-regulating also believes that

A) when there is a surplus in the labor market, the wage rate falls, and when there is a shortage in the labor market, the wage rate rises. B) it is better if the economy is in an inflationary gap than a recessionary gap. C) prices are flexible but wages are not. D) the economy is always in long-run equilibrium. E) the real balance effect does not operate in a recessionary gap.