Under what circumstances does purchasing-power parity explain how exchange rates are determined, and why is it not completely accurate?
Purchasing-power parity works well in helping us explain long-term trends in exchange rates, and in explaining what happens to exchange rates during hyperinflation. It is not completely accurate because (1) not all goods are easily traded, and (2) even tradable goods are not always perfect substitutes when they are produced in different countries.
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The working-age population of people over the age of 16 can be divided into two groups, people
A) in the labor force and people looking for work. B) with a job and people actively seeking a job. C) looking for work and those in the U.S. Armed Forces. D) in the labor force and people with a job. E) in the labor force and people who are not in the labor force.
Corrina just graduated from college, is unemployed, and looking for her first real job. This is an example of
A) frictional unemployment. B) structural unemployment. C) seasonal unemployment. D) cyclical unemployment.
If a monopolist's marginal revenue is less than zero over a range of output, then price elasticity of demand must be: a. greater than one. b. equal to one
c. less than one. d. equal to zero.
Average consumption in an economy is best measured by ________, while average productivity in an economy is best measured by ________.
A. output per person; output per worker B. total output; output per worker C. output per worker; total output D. output per worker; output per person