Question

1.Lynn and Jeremy go on a camping trip every year to celebrate their anniversary. Their purchases this year include 2 steaks at $8 per steak, 1 roll of tissue paper at $1.25 per roll, a pack of vegetables at $2 per pack, and 5 gallons of gas at $3.15 per gallon. What is the cost of Lynn and Jeremy's basket of camping goods?

2.Productivity growth is also closely linked to ____________________.

Select all that apply:

• trade balance

• GDP per capita

• the average level of wages

• the current minimum wage

3.Which of the following best describes the peak of a business cycle?

Select the correct answer below:

the point where real GDP stops falling and begins rising

the calculation of exports minus imports

the lowest point of a recession, before a recovery begins

the highest point in an economy that comes just before real GDP begins falling and recession begins

Answer 1

1. Cost of Lynn and jeremy's basket of campaign goods is as follows:

2 steaks at $8/steak=$16

1 roll of tisuue=$1.25

1 pack of vegetables=$2

5 gallons of gas at $3.15/gallon=$15.75

Total cost of campaign goods =$16+$1.25+$2+$15.75= $35

2 Productivity growth is also closely linked to the average level of wages

The firm's willingness to pay wages depends on the value of output worers produce. Productivity per hour is most important determinant of the average level of wages in the long run.

Hence answer is the average level of wages

3.

A peak is the highest point in the business cycle,when the economy is producing at maximum output,employment is at or above full employment,and prices increases.Following a peak, the economy enters into a correction mode,which is characterised by a contraction where growth slows down,employment decreases and prices also decreases.

Hence answer is is the highest point in an economy that comes just before real GDP begins falling and recession begins