The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:

If a country is growing at an annual growth rate of 5%, what will be its GDP after 5 years?

A) 5 times the current GDP B) 1.28 times the current GDP C) 3.21 times the current GDP D) 1.8 times the current GDP

A good in the U.S. costs $20 . The same good costs 150 pesos in Mexico. If the nominal exchange rate is 10 pesos per dollar, what is the real exchange rate?

a. 4/3 so the good is more expensive in the U.S. b. 4/3 so the good is more expensive in Mexico c. 3/4 so the good is more expensive in the U.S. d. 3/4 so the good is more expensive in Mexico