According to purchasing-power parity, inflation in the U.S. causes the dollar to
a. depreciate relative to all other currencies.
b. depreciate relative to currencies of countries that have lower inflation rates.
c. appreciate relative to all other countries.
d. appreciate relative to currencies of countries that have lower inflation rates.
b
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Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on these data,
A) Cindy has a comparative advantage at producing tacos. B) Scott has a comparative advantage at producing tacos. C) Cindy and Scott have the same comparative advantage in producing tacos. D) neither Cindy nor Scott has a comparative advantage in producing tacos. E) Cindy and Scott have the same comparative advantage in producing pizzas.
Why don't classical economists or monetarists advocate increasing the money supply in order to raise real GDP?
The labor share of total income is the proportion of total income earned by
A. All workers. B. The nonunionized workforce. C. The unionized workforce. D. All households.
Autonomous expenditure is the portion of planned aggregate expenditure that:
A. equals induced expenditure. B. is independent of output. C. equals aggregate output. D. equals planned spending.