The PPI is a price index that measures the cost to consumers of a typical basket of goods sold by firms
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Figure 19-4. The equilibrium exchange rate is originally at A, $3/pound. Suppose the British government pegs its currency at $4/pound
Speculators expect that the value of the pound will drop and this shifts the demand curve for pounds to D2. If the government abandons the peg, the equilibrium exchange rate would be A) $4/pound. B) $3/pound. C) $2/pound. D) less than $2/pound.
In what way is each and every one of the economies of the more than 200 countries of the world similar?
A. all use the same macroeconomic policies B. each focuses on a Keynesian perspective C. all have their own distinctive characteristics D. each focuses on a neoclassical perspective
The accompanying figure shows Avery's weekly production possibilities curve for scarves. 
Avery's PPC would shift outward if she:
A. devotes more time to knitting each week. B. devotes less time to knitting each week. C. knits more red scarves and fewer blue scarves each week. D. knits fewer red scarves and more blue scarves each week.
A professor of economics gets a $100 a month raise. She figures that even with her new monthly salary she will be unable to buy as many goods and services as she could 12 months ago
a. Her real and nominal salary have risen. b. Her real and nominal salary have fallen. c. Her real salary has risen and her nominal salary has fallen. d. Her real salary has fallen and her nominal salary has risen.