PPP-adjustment involves:
A. recalculating a variable like GDP per capita so we can compare someone's standard of living across countries.
B. a method very similar to adjusting to cost-of-living increases using a price index like the CPI.
C. recalculating economic statistics to account for differences in price levels across countries.
D. All of these statements are true.
Answer: D
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When a bank receives $100,000 in new deposits, the amount of loans the bank can make is limited by
A) the Treasury Department. B) federal law. C) its desired reserve ratio. D) the annual federal budget. E) state law, with banks in different states being able to make different amounts of loans.
In a Dutch auction, the higher the bid, the ________ the surplus and the ________ chance of winning
A) higher; lower B) lower; higher C) higher; higher D) lower; lower
An investor has to choose between stocks A&B, each selling for $10 . Stock A, can either increase in price to $12, with a 50% probability or stay at $10 with a 50% probability. Stock B can either increase in price to $15 with a 50% probability or go down to $7 with a 50% probability. Which of the stocks would the investor choose
a. Stock A b. Stock B c. None of the stocks d. The investor would exit the market
The poverty rate is the percentage of the population whose family income falls below an absolute level called the