Which of the following terms describes the process in which the exchange rate equalizes the prices of internationally traded goods across countries?
a. purchasing power parity
b. exchange
c. profiteering
d. arbitrage
a. purchasing power parity
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Refer to Figure 28-8. A typical long-run Phillips curve would have the appearance of a curve running through points
A) A and B. B) A and C. C) B and C. D) A, B, and C.
If there is currently a recessionary gap, a decrease in aggregate demand would make the recessionary gap larger
a. True b. False Indicate whether the statement is true or false
Wages often respond slowly to changes in output
a. True b. False
Which of the following situations would cause the statistical discrepancy to be $20 billion?
a. a current account balance of $380 billion and a financial account balance of $360 billion b. a current account balance of negative $400 billion and a financial account balance of $380 billion c. a current account balance of $100 billion and a financial account balance of negative $80 billion d. a current account balance of negative $50 billion and a financial account balance of $70 billion