By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate changes from $1.10/€ to $1.00/€, the U.S. tradable basket from $500 to $600 and the Euro-Area tradable basket from €550 to €580?
a. The real exchange rate rises approximately by 18%.
b. The real exchange rate falls approximately by 3%
c. The real exchange rate rises approximately by 3%
d. The real exchange rate falls approximately by 20%
e. The real exchange rate falls approximately by 18%
.D
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Use the following diagram to answer the next question.
Assume the economy is initially at the full employment level of real GDP. A decrease in net exports will ________.
A. reduce the full employment level of real GDP B. reduce output in the economy C. raise the price level D. reduce the unemployment rate
Which one of the following people is cyclically unemployed?
A) a Nova Scotia fishery worker who is searching for a better job closer to home B) a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job C) a steel worker who is laid off but who expects to be called back soon D) an office worker who has lost her job because of a general slowdown in economic activity E) none of the above
Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 9 percent, and the current profits of the firm are $60 million. What is the value of the firm?
A. $4,480.6 million B. $289.4 million C. $3,270 million D. None of the statements associated with this question are correct.
Which of the following will shift the short-run industry supply curve of a perfectly competitive industry?
A. an increase in consumer income B. an increase in demand for the product C. an increase in the price of the product D. a decrease in the price of an input