What will happen to domestic monopolists' prices and outputs when a small country engages in international trade?
a. Prices will rise and outputs will fall.
b. Prices will rise and outputs will rise.
c. Prices will fall and outputs will rise.
d. Prices will fall and outputs will fall
Ans: c. Prices will fall and outputs will rise.
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In a small country, using prices of 2012, GDP in 2012 was $100 and GDP in 2013 was $110. Using prices of 2013, GDP in 2012 was $200 and GDP in 2013 was $210
The country's BEA will calculate ________ percent as the growth in real GDP between those years. A) 7.5 B) 15 C) 10 D) 5 E) None of the above answers is correct.
The real exchange rate is equal to the ________
A) nominal rate of exchange plus the domestic level of prices B) the nominal exchange rate minus the relevant foreign price level C) nominal exchange rate divided by the domestic plus foreign price levels D) nominal exchange rate times the domestic price level divided by the foreign price level