Purchasing power parity shows how many units of currency are needed in one country
a. to equate its gross domestic product to the gross domestic product of another country.
b. to equate its gross domestic product and its gross national product.
c. to buy the same amount of output that one unit of currency buys in another country.
d. to equal total purchasing power in another country.
c. to buy the same amount of output that one unit of currency buys in another country.
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Which of the following is true?
A) The gap between the income per capita of U.S and the income per capita of poorer countries is small when exchange rate-based measures are used. B) The gap between the income per capita of U.S and the income per capita of poorer countries is large when PPP-based measures are used. C) Exchange rate-based measures of income per capita are identical to PPP-based measures. D) Exchange rate-based measures of income per capita differ from PPP-based measures of income per capita.
The common currency of the Economic Monetary Union is the
a. franc. b. pound. c. euro. d. mark.
Suppose a firm finds that it must raise wages for all of its workers every time it tries to expand its workforce. This means
A. The marginal factor cost curve is below the average cost of labor curve. B. The firm has market power. C. The labor market is perfectly competitive. D. It will produce more than it would in a competitive labor market.
During a recession, the ideal stimulus is all of the following EXCEPT:
A. theoretical. B. targeted. C. temporary. D. timely.