A widget costs $50 in the US and CAD$53 in Canada. The current exchange rate is 1USD=1.09CAD. Given purchasing power parity, the Canadian dollar would_______to equilibrate prices

a. Appreciate
b. Depreciate
c. Not change
d. None of the above

a

Economics

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"Frictional unemployment and the natural rate of unemployment depends on the age distribution of the population.". Explain the statement with suitable reasons

Economics

Answer the following statements true (T) or false (F)

1. An increase in the money supply always causes an increase in the price level. 2. The effect of a change in the money supply on economic activity may be offset by a change in velocity. 3. An increase in the velocity of money can have an effect similar to that of an increase in the money supply. 4. A government surplus may trigger a decline in the money supply. 5. If the CPI reads 150, prices have increased 50 percent since the base year.

Economics