PRINCIPLES OF MACROECONOMICS
2nd Edition
ISBN: 9780357129128
Author: OpenStax
Publisher: CENGAGE L
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Textbook Question
Chapter 9, Problem 27CTQ
Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the
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Responsd to Luis Rodriguez
1800 tons of pomegranates a year is a lot of sweetness!
So, you can get 71 Afghanis for $1? How cool. Does that mean you can buy a lot of stuff in Afghanistan for only $1? How do you know that your purchasing power in Afghanistan is stronger than in the United States?
Yes, with an exchange rate of 71 Afghan Afghani for 1 US dollar, you can buy many things in Afghanistan for just $1. However, purchasing power isn't solely determined by the exchange rate. It also depends on the cost of goods and services in each country. For example, if a meal in Afghanistan costs 200 Afghanis, you would need about $2.82 to buy that meal in US dollars (since 200 Afghanis divided by 71 Afghanis per dollar equals approximately $2.82). So, while the exchange rate allows you to get more Afghanis for your dollars, you also need to consider how much things cost in Afghanistan.
Now that the world seems to like Afghani stuff and is buying more of it, does that mean your…
The idea that a country can experience gains from trade means that it can
A) consume at a point outside its production possibilities frontier.
B) increase its exports.
C) increase the efficiency of its production.
D) experience a bowed-out production possibilities frontier.
A country is likely to have a comparative advantage in a land-intensive activity if it has a
A) alot of land relative to its population.
B) large population relative to its landmass.
C) higher opportunity cost of producing technology.
D) large amount of capital equipment relative to its population.
Chapter 9 Solutions
PRINCIPLES OF MACROECONOMICS
Ch. 9 - Table 22.4 shows the fruit prices that the typing...Ch. 9 - Construct the price index for a fruit basket in...Ch. 9 - Compute the inflation rate for fruit prices from...Ch. 9 - Edna is living in a retirement home where home...Ch. 9 - How to Measure Changes in the Cost of Living...Ch. 9 - The Consumer Price Index is subject to the...Ch. 9 - Go to this website...Ch. 9 - If inflation rises unexpectedly by 5, would a...Ch. 9 - How should an increase in inflation affect the...Ch. 9 - A fixed-rate mortgage has the same interest rate...
Ch. 9 - How do economists use a basket of goods and...Ch. 9 - Why do economists use index numbers to measure the...Ch. 9 - What is the difference between the price level and...Ch. 9 - Why does substitution bias arise if we calculate...Ch. 9 - Why does the quality/new goods bias arise if we...Ch. 9 - What has been a typical range of inflation in the...Ch. 9 - Over the last century, during what periods was the...Ch. 9 - What is deflation?Ch. 9 - Identity several parties likely to he helped and...Ch. 9 - What is indexing?Ch. 9 - Name several forms of indexing in the private and...Ch. 9 - Inflation rates, like most statistics, are...Ch. 9 - Given the federal budget deficit in recent years,...Ch. 9 - Why is the GDP deflator not an accurate measure of...Ch. 9 - Imagine that the government statisticians who...Ch. 9 - Describe a situation, either a government policy...Ch. 9 - Describe a situation, either a government policy...Ch. 9 - Why do you mink the U.S. experience with inflation...Ch. 9 - If, over time, wages and salaries on average rise...Ch. 9 - Who in an economy is the big winner from...Ch. 9 - If a government gains from unexpected inflation...Ch. 9 - Do you think perfect indexing is possible? Why or...Ch. 9 - The index number representing the price level...Ch. 9 - The total price of purchasing a basket of goods in...Ch. 9 - With in 1 or 2 percentage points, what has the...Ch. 9 - If inflation rises unexpectedly by 5, indicate for...Ch. 9 - Rosalie the Retiree knows that when she retires in...
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