In the long run, the nominal exchange rate
A) is a monetary phenomenon, determined by the quantities of money in two countries.
B) is not related to the real exchange rate, since the real exchange rate is the true value of currencies.
C) will not change if prices in one country change, since prices are nominal variables.
D) is fixed by world central banks, as indicated by the fixed exchange rate system.
A
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The fraction of the working-age population that is in the labor force is called the
A) labor force participation rate. B) unemployment rate. C) employment rate. D) nonresponse rate.
Cartels frequently break down in the long run because
a. they are illegal b. tacit collusion is illegal c. contracts and agreements are legally binding d. cooperative behavior usually lowers profits for the entire industry e. members have an incentive to increase output
According to the above figure and given that supply is intitially at S1, if steel mills ignore the cost of pollution, the equilibrium quantity of steel will most likely be
A. Q1. B. Q2. C. Q2 - Q1. D. None of these.
"Only in a progressive tax system does the amount of taxes increase as income increases." Do you agree or disagree? Explain
What will be an ideal response?