PPP-adjustment involves:
A. recalculating economic statistics to account for differences in price levels across countries.
B. a method very similar to adjusting to cost-of-living increases using a price index like the CPI.
C. recalculating a variable like GDP per capita so we can compare someone's standard of living across countries.
D. All of these statements are true.
D. All of these statements are true.
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For barter to occur, there has to be a double coincidence of wants
Indicate whether the statement is true or false
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the
Three-Sector-Model? a. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions remain the same. b. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions become more negative (or less positive). c. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions become more positive (or less negative).
If the marginal propensity to consume (MPC) is 0.80, the value of the spending multiplier is:
A. 2. B. 5. C. 8. D. 10.
The incentive function of prices:
A. indicates that price increases bring forth more of that resource. B. is the idea that competitive markets will always clear. C. applies to all resources. D. only applies to land.