In the equation of exchange, the variable whose value must be computed from the other variables is the
A) price level.
B) quantity of output.
C) quantity of money.
D) velocity of money.
Ans: D) velocity of money.
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In a change to immigration policy during 2012, "people younger than 30 who came to the United States before the age of 16, pose no criminal or security threat, and were successful students or served in the military can get a two-year deferral from
deportation", Homeland Security Secretary Janet Napolitano said, according to CNN, 06/16/2012. If many of these immigrants had previously been afraid to work, now as a result of being able to work legally A) both the short-run and long-run aggregate supply curves shift rightward. B) only the long-run aggregate supply curve shifts rightward. C) only the short-run aggregate supply curve shifts rightward. D) neither the short-run nor the long-run supply curve shift.
PPP-adjustment:
A. gives us a more realistic sense of differences in living standards around the world. B. allows us to see that poorer countries are not quite so poor as suggested by their nominal GDP per capita. C. gives us a realistic sense of how the living standards of the world's poorest citizens translate into dollar terms. D. All of these statements are true.
The opportunity costs of production in two countries engaged in trade
a. determine which country has an absolute advantage b. influence their domestic inflation rates c. lead to a higher level of economic efficiency d. create shifts of the production possibilities frontiers (PPF's) of both nations e. define the limits of the terms of trade
A 2 percent increase in the price of rice leads to a 2 percent decrease in the quantity demanded of rice. The absolute price elasticity of demand is
A) 3. B) 1. C) 0.1. D) 6.