Which of the following statements is the MOST accurate? In general
A) the monetary approach to the exchange rate is a long run theory.
B) the monetary approach to the exchange rate is a short run theory.
C) the monetary approach to the exchange rate is both a short and long run theory.
D) the monetary approach to the exchange rate neither long run nor short run theory.
E) the monetary approach to the exchange rate is considered less practical than the law of one price.
A
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A production possibilities curve shows the relationship between:
A) the price of a good and its quantity supplied. B) the maximum production of one good for a given level of production of another good. C) the different combinations of two inputs used to produce a given quantity of output. D) the quantity of output produced and the amount of inputs required for the production of the output.
An increase in price expectations shifts the long-run Phillips curve, but not the short-run Phillips curve
a. True b. False Indicate whether the statement is true or false
QN=71 (17766) Refer to Table 23-6. Which of the following is not correct?
a. This economy experienced growth from 1974 to 1975. b. This economy experienced growth from 1975 to 1976. c. This economy experienced growth from 1976 to 1977. d. This economy experienced inflation from 1974 to 1975, from 1975 to 1976, and from 1976 to 1977.
If the supply curve is perfectly inelastic, _____
a. any tax will be entirely born by suppliers b. any tax will be entirely born by demanders c. any tax will be split by demanders and suppliers d. the tax incidence depends upon the elasticity of the demand curve