The Bretton Woods Agreement Did All of the Following Except

question 200

Multiple Choice

The Bretton Woods agreement did all of the following except

• A)set up the International Monetary Fund
• B)name the U.S.dollar as the key reserve currency
• C)set the price of gold at $35 per ounce
• D)fix exchange rates
• E)return the international monetary system to the gold standard

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Definitions:

Nominal Wage Rates

The amount of money paid to an employee by an employer in current prices, without adjusting for inflation.

Real Wages

Wages or salaries adjusted for inflation, reflecting the true purchasing power of income.

Potential Output

The economy’s maximum sustainable output, given the supply of resources, technology, and rules of the game; the output level when there are no surprises about the price level.

Natural Rate

The natural rate refers to the long-term unemployment rate that an economy experiences under normal conditions, unaffected by short-term cyclical fluctuations.