If a 10% currency appreciation results in a 10% decrease in the price of imported goods, then this is called
A) a complete pass-through.
B) the Marshall Lerner condition.
C) a partial pass-through.
D) import inflation.
A
Economics
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If the equilibrium price for a two-liter bottle of Coca-Cola is $1.50 today, just like it was ten years ago, can we safely say that all supply and demand conditions in the market for Coke have remained very stable all these years?
What will be an ideal response?
Economics
The natural rate of unemployment worsens if:
a. Actually, the natural rate cannot worsen. That's why it's called "natural." b. Capital markets become more competitive. c. A nation's resource endowments expand. d. Unemployment benefits drastically improve. e. Real wages become more flexible.
Economics