The purchasing power parity theory claims that a change in relative ________ between two countries must cause a change in ________ in order to keep the prices of goods in two countries fairly similar.
A) exchange rates; inflation
B) inflation; exchange rates
C) interest rates; inflation
D) interest rates; exchange rates
B) inflation; exchange rates
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Free riding is primarily a characteristic of pure private goods
Indicate whether the statement is true or false
Under the Patient Protection and Affordable Care Act (ACA), individuals who do not have health insurance will be subject to a fine
Indicate whether the statement is true or false
A price ceiling is binding when it is set
a. above the equilibrium price, causing a shortage. b. above the equilibrium price, causing a surplus. c. below the equilibrium price, causing a shortage. d. below the equilibrium price, causing a surplus.
Using the labor market, the production function Real GDP = T (L, K), and the LRAS curve, describe the process by which a decrease in income taxes impacts economic growth