In the Santa Rita silver mines in Arizona in 1870, Mexican miners received about $12 per month, while “American” miners received $70. Although the wages of both groups tended to rise over time, the gap persisted until at least 1910. Mexican and American miners did the same work and were equally productive. Economists call this pay differential as

How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 1.60 dollars per British pound?

A) 38.125 British pounds B) 28.125 British pounds C) 48.125 British pounds D) 58.125 British pounds E) 18.125 British pounds

The aggregate expenditures function:

a. has the same slope as the aggregate demand curve. b. is the key determinant of equilibrium real GDP in a fixed-price model. c. is negatively related to household consumption. d. is negatively related to net exports. e. is equal to C+I+G-X.