Respuesta :
Answer:
POOR INVESTMENT GIVEN THE NEUTRALITY OF MONEY, THE DECLINE IN REAL GDP, AND THE HIGH UNEMPLOYMENT RATE.
Explanation:
The neutrality of money, also called neutral money, is an economic theory stating that changes in the money supply only affect nominal variables(prices, wages) and not real variables (consumption, employment).
Real gross domestic product (GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year. it accounts for changes in price levels and provides a more accurate figure of economic growth.
The unemployment rate is the share of the labor force that is jobless, expressed as a percentage. Generally, an unemployment rate of between 4% and 6% is regarded as normal and healthy for a country.
Since the nominal GDP of Paradisia has quadrupled over the past year (i.e 400%), this is an evidence of neutrality of money,
Also it has an unemployment rate of 20% which is way higher than the normal and healthy rate, this indicates high unemployment rate.
it also has a inflation of 500% which means the real GDP has not increased (i.e it has decreased or declined) since the inflation of 500% is greater than an increase of 400% in nominal GDP.
Therefore, this opportunity seems like a POOR INVESTMENT GIVEN THE NEUTRALITY OF MONEY, THE DECLINE IN REAL GDP, AND THE HIGH UNEMPLOYMENT RATE.