If the growth rates of nominal GDP and real GDP in an economy are 6% and 2% respectively, the inflation rate in the economy must be:

Refer to Figure 2-13. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of both pineapples and coconuts?

A) neither country B) Costa Rica C) Guatemala D) cannot be determined

Transactions costs are:

A. the time and energy involved with creating an exchange. B. often cited as a reason why purchasing power parity doesn't hold. C. usually higher when transactions take place internationally. D. All of these statements are true.