India’s real GDP was $2.5 trillion in 2018. Using the simple aggregate expenditure model and assuming that the country’s economy was in equilibrium, what was India’s aggregate expenditure?

In economics, what is the difference between the short run and the long run?

What will be an ideal response?

Assume a one year U.S. bond pays 4.0% interest and a similar U.K. bond pays 5.2% interest. Which of the following changes will establish interest rate parity?

a. The British pound would be expected to appreciate by 1.2% against the U.S. dollar. b. The U.S. dollar would be expected to depreciate by 1.2% against the British pound. c. The British pound would be expected to depreciate by 1.2% against the U.S. dollar. d. The British pound would be expected to appreciate by 9.2% against the U.S. dollar. e. The U.S. dollar would be expected to appreciate by 9.2% against the British pound.