An overvalued currency, such as the Argentinean peso in 2001, is an indicator of a balance of payments surplus
a. True
b. False
Indicate whether the statement is true or false
False
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Peg's Manicure Manor did 4,000 sets of nails in 2015 and 4,500 sets of nails in 2016. The price of a set of nails was $20 in 2015 and $22 in 2016. If 2015 is the base year, Peg's contribution to nominal GDP in 2015 was ________ and in 2016 was ________.
A. $80,000; $99,000 B. $88,000; $90,000 C. $80,000; $90,000 D. $80,000; $88,000
Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at 20¢ per pound when 500 pounds are grown. If the long-run supply curve is horizontal, then
A) some firms will enjoy long-run profits because they operate at minimum average cost. B) the long-run price will be 20¢ per pound. C) each consumer will purchase $100 worth of potatoes. D) the long-run price will be set just above 20¢ per pound.
Other things the same, we'd expect that a job with less pleasant working conditions pays
a. more; this is known as an efficiency wage. b. more; this is known as a compensating differential. c. less; this is known as an efficiency wage. d. less; this is known as a compensating differential.
Suppose the economy's short-run equilibrium is at a point to the right of Natural Real GDP. Which of the following statements is true?
A) The economy is in an inflationary gap. B) The economy is in a recessionary gap. C) The economy is in long-run equilibrium. D) This situation is actually impossible.