Assuming that w and r are both positive, if the long-run expansion path is horizontal, then

The gold standard system was:

A) a floating exchange rate system. B) a fixed exchange rate system, in which the country's currency was fixed relative to a pound of gold. C) a fixed exchange rate system, in which the country's currency was fixed relative to an ounce of gold. D) only used by the United States.

The age-earning cycle predicts that a typical person will

A) be earning $50,000 in the year 2010. B) be earning the lowest income right before retirement. C) be earning the highest income right before retirement. D) be earning the highest income at about the age 45-50.