Which of the following reasons can explain why purchasing power parity doesn't hold?
A. Transactions costs
B. Fixed prices
C. Political pressures
D. All of these are reasons why purchasing power parity doesn't hold.
Answer: A
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Suppose there are profit maximizing, competitive buyers and sellers of labor in an industry, and the amount of capital is fixed for each firm. Explain under what condition the output price will equal the wage rate
What will be an ideal response?
The union participation rate in the United States is
a. lowest among service workers in the private sector b. highest among service workers in the private sector c. lowest among service workers in the public sector d. highest in heavy industry e. highest in high-technology industries
If you were to start a business delivering documents, you might need to purchase cell phones, bicycles, desks, and chairs
a. These purchases are called capital investment. If you raise the funds to purchase them from others you are a saver. b. These purchases are called capital investment. If you raise the funds to purchase them from others you are a borrower. c. These purchases are called consumption. If you raise the funds to purchase them from others you are a saver. d. These purchases are called consumption. If you raise the funds to purchase them from others you are a borrower.
?Exhibit 10A-1 Aggregate demand and supply model
Given the shift of the aggregate demand curve from AD1 to AD2 in Exhibit 10A-1, the real GDP and price level (CPI) in long-run equilibrium will be:
A. $8 billion and 150. B. $12 billion and 200. C. $8 billion and 250. D. $8 billion and 200.