When we compare PAE and actual output (Y) the macroeconomic variable we generally use to directly assess their equivalence is:

In Ireland, a pint of beer costs 3 euros. In Australia, a pint of beer costs 4 Australian dollars. If the exchange rate is .8 euros per Australian dollar, what is the real exchange rate?

a. 4/2.4 pints of Irish beer per pint of Australian beer b. 3/3.2 pint of Irish beer per pint of Australian beer c. 3.2/3 pints of Irish beer per pint of Australian beer d. 2.4/4 pints of Irish beer per pint of Australian beer

A rise in prices of imported resources will cause aggregate:

A. demand to decrease. B. supply to decrease. C. supply to increase. D. demand to increase.