Suppose the Euros per Canadian dollar exchange rate is 4 . The aggregate price level in France is 100, and the aggregate price level in Canada is 80 . The real exchange rate between the two countries is _____

Market economies are distinguished from other types of economies largely on the basis of

a. the political affiliations of government officials. b. the process by which government officials are elected or appointed. c. the ways in which scarce resources are allocated. d. the number of retail outlets available to consumers.

Government expenditures on capital goods such as roads could increase aggregate supply. Such effects on aggregate supply are likely to matter more in the short run than in the long run

a. True b. False Indicate whether the statement is true or false