All of the following explain why purchasing power parity does not completely explain long-run fluctuations in exchange rates except
A) some countries impose barriers to trade.
B) not all goods and services produced in any country are traded internationally.
C) most countries have free markets with little, if any, government regulation.
D) consumer preferences for goods and services differ across countries.
C
You might also like to view...
The greater the tax wedge, the ________ the amount of employment and the ________ potential GDP
A) larger; smaller B) smaller; smaller C) smaller; larger D) larger; larger E) None of the above because the tax wedge does not affect employment or potential GDP.
Nonprice rationing devices are required
A) because the price system does not allocate resources efficiently. B) when there are price floors but not when there are price ceilings. C) so that prices will go back to equilibrium. D) to allocate goods when there is a price ceiling.
Researchers have found that LED light bulbs use significantly less energy than incandescent light bulbs while producing the same amount of light. However, producing LED light bulbs is significantly more costly than producing incandescent light bulbs. In order to encourage light bulb manufacturers to produce more LED light bulbs, which of the following is most likely to happen?
A. The government will tax LED light bulbs. B. The government will impose a tax on incandescent light bulbs. C. The government will subsidize LED light bulbs. D. The government will subsidize the production of incandescent light bulbs.
The equation for determining real GDP for year X is:
A. 
B. 
C. 
D. 