Refer to above figure. With a specific tariff of $3 per unit, what is the quantity of Widgets produced domestically?

A budget philosophy using fiscal policy to achieve the economy's potential GDP, rather than balancing budgets either annually or over the business cycle is termed as budget finance

Indicate whether the statement is true or false

Suppose the average price of a Big Mac in the United States is $3.50 while in Japan the average price is 400 yen. If the market exchange rate is that 1 dollar is exchanged for 100 yen, the purchasing power parity model of exchange-rate determination suggests that

A. the price of a Big Mac in Japan will rise. B. the yen is overvalued. C. the dollar will depreciate against the yen. D. the yen value is about correct.