A rise in the real exchange rate is called

Suppliers recognize there is a shortage in the market for their product when they notice that

a. the quantity supplied exceeds the quantity demanded b. the quantity demanded is falling c. inventories are falling d. production exceeds new orders for the product e. government economists announce a shortage exists

When determining inflation, the price level in each period is typically reported as an index number, rather than as the _______________ amount for buying the basket of goods.

a. total b. relative c. dollar d. combined