The degree that PPP may hold in the short- or in the long-run is very much related to the choice of an exchange rate regime
Indicate whether the statement is true or false
TRUE
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The cross-price demand for capital (relative to the wage) may slope up or down.
Answer the following statement true (T) or false (F)
Refer to the above figure. Which panel represents what happens in the U.S. job market in the short-run when U.S. firms substitute labor outside of the U.S. for labor inside the U.S.?
A) Panel A B) Panel B C) Panel C D) Panel D
Refer to the information provided in Figure 7.9 below to answer the question(s) that follow. 
Figure 7.9Refer to Figure 7.9. The firm is currently along isocost CD. If the price of capital is $40, then the price of labor is
A. $6. B. $40. C. $240. D. indeterminate from this information.
Refer to Figure 10.1. If three lights are installed, the people who were responsible for the light being installed each receive a payoff of
A) 4. B) 6. C) 8. D) 10.