Assuming no change in the nominal exchange rate, how will a decrease in the price level in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will rise.
B) The real exchange rate will be unaffected.
C) The real exchange rate will fall.
D) The impact on the real exchange rate cannot be predicted.
C
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Using the figure above, which of the following statements are correct?
i. When 3 haircuts are produced, the firm's ATC is $10. ii. If the firm charges each customer the same price for a haircut, the price of a haircut is $14. iii. The firm is NOT a perfect competitor. A) i only B) ii only C) i and ii D) i and iii E) i, ii, and iii
Deflation
a. reflects falling price levels b. was prevalent during the oil shocks of the 1970s c. under the current trends will cause consumers' purchasing power to shrink d. has been persistent in the U.S. economy since the Great Depression e. is the same as stagflation
In the figure above, how many units of corn are produced at point a?
A) 2000 B) 2500 C) 3000 D) We can’t tell without more information
According to the classical economists, if there were substantial unemployment, there would be a fall in _____, _____, and _____.
Fill in the blank(s) with the appropriate word(s).