To study a macroeconomy, we calculate aggregate quantities in real terms because
A) we want to get rid of the illusion of price effects.
B) we want to concentrate on the production of real goods, as opposed to services.
C) it is then easier to take logarithms.
D) it is the only way to reconcile the three approaches to measuring GDP.
A
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Customer service representatives who have lost their jobs as a result of call centers being outsourced to India are an example of
A) structural unemployment. B) voluntary unemployment. C) frictional unemployment. D) cyclical unemployment.
China linked its exchange rate to the U.S. dollar which meant in the 2004-2007 period
A) it appreciated against most other currencies, hurting its manufacturing competitiveness. B) it depreciated against most other currencies, making its products cheaper. C) it decreased the size of its merchandise trade surplus. D) it overvalued its currency, making it hard to attract foreign investment.