If the Mexican nominal exchange rate does not change, but prices rise faster in Mexico than in all other countries, then the Mexican real exchange rate
a. does not change.
b. rises.
c. declines.
d. There is not enough information to answer the question
b
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If the cost per unit of output for a particular product is $50 and the product sells for $55, what is the percentage markup over cost per unit?
a. 200 percent b. 10 percent c. 100 percent d. 20 percent e. 50 percent
Refer to the accompanying table below. The average cost of 5 units of activity is:Units of ActivityTotal CostTotal Benefit0$0$01$2$122$6$223$12$304$20$365$30$406$42$427$56$43
A. $4 B. $6 C. $10 D. $8
Many European countries, such as Italy and Spain, have:
A. less unemployment than the United States, but with a greater percentage of that unemployment in the form of long-term unemployment. B. more unemployment than the United States, but with a smaller percentage of that unemployment in the form of long-term unemployment. C. more unemployment than the U.S., with a greater percentage of that unemployment in the form of long-term unemployment. D. less unemployment than the United States, with a smaller percentage of that unemployment in the form of long-term unemployment.
Real business cycle theory explains variations in prices, employment, and real Gross Domestic Product (GDP) by focusing on
A. changes in real variables such as supply shocks, technological changes, and shifts in the composition of the labor force. B. the effects of the Phillips curve. C. anticipated monetary policies enacted by the Fed. D. anticipated changes in fiscal policy enacted by the government.