Which of the following is not true regarding "exchange rate indexes?"
A) They will all show the same general trends (i.e., appreciation or depreciation).
B) Neither economic theory nor practice gives a clear indication of which exchange rate is best.
C) For short-term movements, there can be large differences across exchange rate indexes.
D) Exchange rate indexes are used to measure the average value of a currency relative to several other currencies.
C
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Observations of inflation in the 1970s prompted what further addition to the Phillips curve?
A) price shocks B) expected inflation C) personal consumption expenditures D) all of the above E) none of the above
Excess demand or excess supply will always drive price back to equilibrium in a free market
Indicate whether the statement is true or false
When total spending is less than production, GDP will decrease.
Answer the following statement true (T) or false (F)
Refer to the above table. At a price of $15 per unit, which of the following would exist?
a. A shortage of 1,600 units b. A surplus of 600 units c. A shortage of 1,000 units d. A surplus of 1,000 units