In the above figure, the curve labeled a is the ________ curve and the curve labeled b is the ________ curve

If absolute PPP holds, then the real exchange rate must equal 1

Indicate whether the statement is true or false

Suppose society wants to increase the number of teachers in society but doesn't want to pay teachers any more in salary and benefits. This could only occur by

A) making it more expensive to become a teacher, perhaps by raising college tuition rates. B) making it less expensive to become a teacher, perhaps by offering subsidies to college tuition. C) making computers more powerful. D) increasing the income of student parents.