Purchasing power parity is the theory that, in the long run, exchange rates should be at a level such that equivalent amounts of any country's currency
A) should earn the same real rate of return.
B) are valued inversely relative to the size of its GDP.
C) will equalize nominal interest rates across countries.
D) allow one to buy the same amount of goods and services.
D
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An increase in government expenditure on goods and services
A) increases aggregate demand. B) increases the aggregate quantity demanded. C) decreases the aggregate quantity demanded. D) decreases aggregate demand.
A perfectly competitive firm is a price
A. giver. B. taker. C. maker. D. leader.
Between 1994 and 2000 the poverty rate ____ and the number of people on welfare _____.
Fill in the blank(s) with the appropriate word(s).
Which of the following is not considered to be a source of market power for a firm?
A.) Externalities. B.) Patents. C.) Restrictive production agreements. D.) Economies of scale.