Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1. Now the exchange rate changes to 90 yen = $1. Then the machine would now cost
A. more dollars.
B. the Japanese citizen less yen.
C. fewer dollars.
D. the Japanese citizen more yen.
Answer: B
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Polonia produces two goods - X and Y. The quantity produced of the two goods and their prices in two different years are given in the table below:
Year Good X Price Good X Quantity Good Y Price Good Y Quantity 1 $10 100 $12 250 2 $25 120 $22 300 i) Calculate the real GDP of Polonia in Year 2 taking Year 1 as the base year. ii) What is the growth rate of Polonia's real GDP between Year 1 and Year 2?
If unemployment is at the natural rate, then there
A) is no cyclical unemployment. B) is no frictional unemployment. C) will be cyclical and frictional unemployment but not structural unemployment. D) will be only cyclical unemployment.
A Big Mac costs $4.79 in the United States and 9.6 zlotys in Poland. If the exchange rate is 3 zlotys per dollar, what is the dollar cost of a Big Mac in Poland?
A) $1.60 B) $2.00 C) $3.20 D) $4.64
The difference between GNP and GDP is explained by:
(a) Exports and imports; (b) The level of investment; (c) Net factor income from abroad; (d) None of the above.