The United States economy has achieved the target rate of unemployment, as set by the Full Employment and Balanced Growth Act (1978), for most years over the last few decades

Purchasing power parity exists when domestic currency:

a. maintains a fixed exchange rate with foreign currency. b. is not convertible into foreign currency. c. buys more goods at home than abroad. d. buys as many goods at home as it does abroad. e. appreciates in value against foreign currency.

Todd owns a truck that he values at $2,000 . Susan, who does a lot of hauling, values the truck at $6,000 . If these two are allowed to negotiate, which of the following will most likely occur?

a. Todd will sell the truck for $1,500. b. Susan will buy the truck for $7,000. c. The truck will be sold at a price greater than $2,000 but less than $6,000, and both parties will benefit. d. Susan will benefit more than Todd if the truck is sold.