### Nominal interest rate-the inflation rate

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1. Suppose total output (real GDP) is \$10,000 and worker-hours are 20,000. We can conclude that:

A. nominal GDP must be between \$10,000 and \$20,000.

B. labor productivity must be \$0.50.

C. the price-level index must be less than 100.

D. real GDP per capita must be \$200,000.

2. If the nominal interest rate is 18 percent and the real interest rate is 6 percent, the inflation rate is:

18 percent.

24 percent.

6 percent.

12 percent.

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