A market basket of goods costs $350 in the United States and 200 pounds in the United Kingdom. According to the purchasing power parity theory, the exchange rate should move towards:

Use a graph to show the effects of a contractionary monetary policy to reduce inflation and move an economy back to potential real GDP. Explain what happens to aggregate demand, real GDP, and the price level

What will be an ideal response?

If unit costs increase as the quantity of production increases and all inputs are variable, then a firm is experiencing

A) constant returns to scale. B) economies of scale. C) diseconomies of scale. D) falling economies of scope.