A dual exchange rate is no different from a devaluation in that they both try to improve a country's BOP

The figure above shows a labor market. If this labor market is perfectly competitive, the wage rate is

A) $4 per hour. B) $6 per hour. C) $8 per hour. D) $10 per hour.

If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases, then data would show the most rapid inflation occurs when

a. unemployment is the highest, and the lowest inflation occurs when unemployment is the lowest. b. AS grows most rapidly, and the lowest inflation occurs when AS grows most slowly. c. AD rises most slowly, and the lowest inflation occurs when AD rises most rapidly. d. output grows most rapidly and the lowest inflation when output grows most slowly.