The purchasing power parity method of comparing income across countries is based on
What will be an ideal response?
the cost of purchasing a specific bundle of goods and services in each country.
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Which of the following would result in a higher real wage rate and a greater level of employment in the United States?
A) an increase in the supply of capital in the United States B) more liberal U.S. immigration policies C) an increase in the U.S. population D) all of the above
Monopolistic competition in long-run equilibrium is characterized by
A. excess capacity. B. higher cost per unit of output than under perfect competition. C. inefficiency in use of resources. D. All of the responses are correct.
Which of the following statements is true of unemployment? a. Cyclical unemployment decreases during recessions and increases during expansions
b. Some unemployment exists even when the economy is healthy and growing. c. Unemployment and inflation are not related. d. People who are willing and able to work but have given up the search for a job are considered unemployed. e. Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs.
The equilibrium of aggregate supply and aggregate demand represents the:
A. overall state of the national economy. B. total of all goods and services produced in the major sectors of the economy. C. general price level of the economy with respect to goods and services households purchase. D. All of these are true.