In the long run, when factors are mobile, an increase in the relative price of a good will increase the real earnings of the factor used intensively in the production of that good. This is known as:

In practice, the Bretton Woods system is best described as

A) an adjustable peg. B) a purely fixed exchange rate C) a gold exchange standard D) Both A and C

Which of the following is true of inflation?

a. It is an increase in the general price level of goods and services. b. The purchasing power of money increases as the result of inflation. c. Inflation is similar to interest payments on future money income, such as pensions and receipts from outstanding loans. d. Inflation has no effect on real income.