Deviations from PPP
A) may be due to the differential speed of adjustment between exchange rates and prices.
B) may occur when international trade involves lags between order and delivery.
C) may appear during periods dominated by news or unexpected events.
D) All of the above.
D
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A worker is unemployed if he:
A) has been working part-time and has been actively looking for full-time work. B) does not have a job and is not actively looking for a job. C) is working from home and drawing a weekly salary. D) does not have a job and has been actively looking for one in the prior four weeks and is available for work.
A contractionary monetary policy is likely to lead to ________
A) lower real interest rates B) lower real wages C) a lower demand for labor D) a lower supply of labor
Excessive dependence on cheaper foreign imports can cause a(n) ________ in certain sectors of the economy
A) leftward shift in the domestic labor demand curve. B) upward movement along the domestic labor demand curve. C) rightward shift in the domestic labor demand curve. D) downward movement along the domestic labor demand curve.
If a positive externality were present in a market, the social benefit curve would be:
A. below the private demand curve. B. above the private demand curve. C. the same as the private demand curve. D. Cannot say without more information.