Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate demand

Refer to Scenario 19-1. The value of each canoe in gross domestic product equals

A) $1,200. B) $800. C) $500. D) $400.

The advantage of an effective exchange rate is

A) it gives us an accurate gauge for the strengthening or weakening of a currency. B) it uses a weighted average of bilateral exchanges based on the country's trading partners. C) unreliable because its using different weights to reflect trade flows. D) A and B.