An overvalued exchange rate is an exchange rate:
A. at which the quantities of currencies demanded and supplied in the foreign exchange market are equal.
B. that equals the number of units of a foreign currency over the number of units of domestic currency.
C. that has an officially fixed value less than its fundamental value.
D. that has an officially fixed value greater than its fundamental value.
Answer: C
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Labor force productivity has increased from $30 per hour to $32 per hour over the past year. This could result from
A) an increase in real GDP with no change in the aggregate hours or a decrease in aggregate hours with no change in real GDP. B) only an increase in real GDP. C) an increase in population. D) an increase in the labor force participation rate. E) only a decrease in aggregate hours.
The elasticity of supply is defined as the ________ change in quantity supplied divided by the _______ change in price.
a. total; percentage b. percentage; marginal c. marginal; percentage d. percentage; percentage