The degree that PPP may hold in the short- or in the long-run is very much related to the choice of an exchange rate regime

Indicate whether the statement is true or false

TRUE

Economics

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A decrease in the supply of labor will ________ real wages and ________ employment

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

Economics

The Federal Reserve increases interest rates when it wants to reduce aggregate demand to fight inflation. How do increases in the interest rate reduce aggregate demand?

What will be an ideal response?

Economics