Which of the following statements is correct?
a. In the short run, interest rate differentials have the greatest impact on exchange rates.
b. In the medium run, differences in growth rates of aggregate demand have the greatest impact on exchange rates.
c. In the long run, price and inflation differentials have the greatest impact on exchange rates.
d. All of the above are correct.
d
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Refer to the diagram. At the profit-maximizing level of output, the firm will realize:
A. an economic profit of ABHJ.
B. an economic profit of ACGJ.
C. a loss of GH per unit.
D. a loss of JH per unit.
Which of the following is excluded from calculations of GDP?
A. The value of lawn mowing provided by a teenager for his own family. B. Goods that bring little value to society. C. Income received by managers of corporations. D. Goods that are produced and sold during the time period.