Suppose the real exchange rate is 10, the domestic price level is 8, and the foreign price level is 4.(a)What is the nominal exchange rate?(b)Suppose the real exchange rate rises by 10%, the inflation rate in the domestic country is 6%, and the inflation rate in the foreign country is 4%. By what percentage does the nominal exchange rate change?(c)Suppose the nominal exchange rate rises by 5%, the real exchange rate rises by 8%, and domestic inflation is 3%. What is the foreign inflation rate?
What will be an ideal response?
| (a) | 5 |
| (b) | 8% |
| (c) | 0% |
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The demographic transition refers to the:
A) decrease in fertility and number of children per family that many societies undergo as they transition from industry to agriculture. B) decrease in fertility and number of children per family that many societies undergo as they transition from agriculture to industry. C) increase in fertility and number of children per family that many societies undergo as they transition from agriculture to industry. D) increase in fertility and number of children per family that many societies undergo as they transition from industry to agriculture.
The figure above shows the market for steel, the production of which creates pollution
a. What point represents the equilibrium price and what point represents the equilibrium quantity in an unregulated, competitive market? b. What area represents the deadweight loss of the unregulated, competitive market outcome? c. What point represents the efficient quantity? d. If the output level in part (c) was achieved through the use of a government imposed tax, what price would consumers pay? What price would the producers receive? What distance represents the amount of the tax? e. If government successfully uses marketable permits to eliminate the external cost, what point represents how much output would be produced?
Under perfect competition, firms are relatively ignorant of the actions of their competitors.
Answer the following statement true (T) or false (F)
Using the official measure of unemployment, which of the following would NOT be counted as unemployed?
A) a person who is not working but who has tried to find a job in the past week B) a person who is waiting to be called back to a job after having been laid off C) a person who performs traditional housework and does not work outside the home for pay D) a person who is waiting to start a new job in the next 30 days