People who were working in the formal sector and now work in the underground economy but report being unemployed will cause the unemployment rate to ________, and this action tends to ________ the unemployment rate

Consider two economies: A and B. Economy A is located close to the equator and is characterized by an extreme climate. The terrain in economy A is inhospitable and it lacks rivers or other water bodies in its territory

On the other hand, economy B is located in the temperate zone with a pleasant climate, fertile soil, and navigable rivers. Suppose the geography hypothesis of economic growth holds. a) Which of the two economies is likely to be more prosperous? b) Is the difference in prosperity between the two economies likely to be sustained in the long run?

The exchange rate

A) is the price of one country's money in terms of another country's money. B) is largely determined by Treasury budget policy. C) is not a market-determined price. D) has little impact on the balance sheet and income statements of businesses with foreign holdings.