For a given nominal exchange rate and foreign price level, a decrease in the domestic price level ________ the real exchange rate.
A. may either increase or decrease
B. decreases
C. offsets any change in
D. increases
Answer: B
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The table above gives the labor market for a small foreign economy. A minimum wage law that sets the minimum wage at $8.50 per hour produces
A) a labor surplus of 65 million hours. B) a labor shortage of 25 million hours. C) a labor surplus of $0.50 per hour. D) a labor surplus of 25 million hours. E) equilibrium in the labor market.
The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function
a. What are the equilibrium real wage rate and the level of employment? b. What is potential GDP?
The slope of a line equals the change in the variable measured along the
A) x-axis divided by the change in the variable measured along the y-axis. B) y-axis divided by the change in the variable measured along the x-axis. C) x-axis minus the change in the variable measured along the y-axis. D) x-axis multiplied by the change in the variable measured along the y-axis. E) y-axis minus the change in the variable measured along the x-axis.
An example of household production excluded from GDP is
A) household cleaning services provided by Merry Maids Incorporated. B) child care provided by a certified nanny. C) tree trimming you provide at your parents' home. D) plumbing work completed by Joe Fix-it. E) lawn care provided by a local lawn care company.