In the short run, there are large and persistent deviations between actual exchange rates and exchange rates predicted using purchasing power parity because of:
a. Discretionary monetary policy.
b. Discretionary fiscal policy.
c. Widely different inflation rates in the two nations.
d. Very different real GDP growth rates in the two nations.
e. Many goods and services in the two nations' price indices are not traded internationally.
.E
Economics
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At full employment, actual ________ equals ________
A) real GDP; potential GDP B) real GDP; nominal GDP C) unemployment; zero D) potential GDP; nominal GDP E) nominal GDP; potential GDP
Economics
A feature that distinguishes economists' approach to making choices is (are):
A) assigning opportunity costs a major role in their analyses of choices. B) assuming individuals make choices to maximize objectives. C) emphasizing that choices are made at the margin. D) all of the above.
Economics