Nominal exchange rates differ from real exchange rates in that nominal exchange rates
A) do not correct for differing interest rates across countries.
B) do not measure the purchasing power of the currency.
C) are fixed, while real exchange rates are flexible.
D) are flexible, while real exchange rates are fixed.
B
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Refer to Table 8-17. What is nominal GDP in 2016?
A) $3,320 B) $3,690 C) $6,360 D) $7,035
Which of the following is an example of a normative statement?
A. The average price of a Whopper Jr. is $1.69. B. The United States ought to adopt a flat rate personal income tax. C. A higher percentage of prostitutes incarcerated in Miami test positive for AIDS when compared to registered prostitutes in Nevada. D. Average growth in real GDP per year was 1.84 percent between 2000 and 2010.
In the short run, monopolistically competitive firms:
A. can earn positive economic profits by acting like a monopolist. B. will earn zero economic profits by acting like a monopolist. C. can earn positive economic profits by acting like a perfectly competitive firm. D. will earn zero economic profits by acting like a perfectly competitive firm.
If the current price is less than the market clearing or equilibrium price, we would expect:
A) a surplus. B) downward pressure on price. C) upward pressure on price. D) no change in the market price.