Studies of PPP covering many years will be more likely to yield evidence of PPP than studies based on short-run data
Indicate whether the statement is true or false
TRUE
Explanation: The longer time frame will allow for more inflation so that the random relative price effects are relatively unimportant and we find exchange rate changes closely related to inflation differentials.
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Consider the same market for nonalcoholic beer as in the previous question. How many "units" of beer will Boors produce in the Nash equilibrium?
a. 667 b. 1,667 c. 2,333 d. 3,000
Externalities get their name from the fact that they are:
a. b and d. b. unintended. c. short lived. d. outside of decisions. e. outside of marketplace.
A transaction cost for buying a new tennis racket would include ______.
a. the other items that could have been purchased with the money b. an hour spent testing different rackets before buying it c. the price of a can of tennis balls to use with it d. the hours spent using the racket after the purchase
In the short run, a perfectly competitive firm's production decision aims to maximize profits at the production rate where P = MR = MC.
Answer the following statement true (T) or false (F)