What Is the Difference Between Endogenous and Exogenous Variables? in the Equilibrium

question 11

Essay

What is the difference between endogenous and exogenous variables? In the equilibrium condition of PPP,which variables are endogenous and which are exogenous?

---

Definitions:

Units

A standard quantity or measurement used to express the quantity of a product or dimension of a measure.

Purely Competitive Market

A market structure where no single buyer or seller has the power to influence prices, and products are perfectly substitutable.

Wage Rate

The standard amount of compensation an employee receives for performing a specific task or for working a certain amount of time, typically measured per hour or per unit of work.

Workers

Individuals engaged in any form of work either for wages, salary, or as independent contractors.