Sirius has just finished high school and started looking for his first job, but has not yet found one. Other thingsthe same, the unemployment rateSelect one:O a. increases and the labor-force participation rate is unaffected.O b. is unaffected and the labor-force participation rate increases.O c. and the labor-force participation rate both increase.O d. and the labor-force participation rate are both unaffected. The purchasing power parity may not fully explain exchange rate movements becauseSelect one:O a. of changes in the price of goods and services not traded internationallyO b. the domestic price level changes by more than the foreign price levelO. monetary policy differs across countriesO d. the foreign price level changes by more than the domestic price levelO e. different countries have different inflation rates

Option (c). When a fresh student starts looking for job, he enter labor force and is unemployed.…

Answered: chasing power parity may not fully…

Business

Economics

chasing power parity may not fully explain exchange rate

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 2P

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