In an open economy, the law of one price implies that

A) the domestic economy may have a comparative advantage in only half the goods it produces.
B) perfect competition holds in all domestic markets.
C) purchasing power parity should hold.
D) the nominal exchange rate should equal one.


C

Economics

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A) homogeneous products. B) many firms. C) low barriers to entry and exit. D) sales promotion and advertising.

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Which of the following would be classified as a personal consumption expenditure?

a. the expenditure of time you gave in volunteering to raise money for a cancer fund b. your purchase of a newly constructed house c. your purchase of a preowned house d. your purchase of one share of Microsoft stock e. your purchase of your economics course

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Calculate the inflation rate for a country where the GDP deflator rises from 120 to 165

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Which prices are used to measure goods and services in calculating GDP?

A. past year prices B. projected prices C. current prices D. average prices

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