(Figure: Interpreting Supply Shifts) The shift of the supply curve from A to B is an example of a 
Definitions:
Spot Exchange Rate
The current market price for exchanging one currency for another for immediate delivery.
Forward Exchange Rate
An agreed exchange rate for a currency to be exchanged at a future date, used in hedging and trading strategies.
Inflation Rates
The rate at which the cost of general goods and services inflates, consequently eroding the power to buy.
Relative Purchasing Power Parity
An economic theory that states the rates of change in price levels between two countries should equal the rate of change in the exchange rate between their currencies.
Q5: (Figure: Determining Surplus 6) According to the
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