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If Inflation in Country a Exceeds Inflation in Country B

question 43

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If inflation in country A exceeds inflation in country B, we can express the percentage change in the units of currency of country A per unit of currency of country B as:


Definitions:

Average-Total-Cost Curve

Graphical representation that shows how the average total costs of production change as the quantity of output is altered.

Average-Fixed-Cost Curve

A graphical representation that shows how the average fixed costs of production decrease as the quantity of output increases, due to spreading fixed costs over a larger number of units.

Average Total Cost

Average total cost is the total cost of production divided by the quantity of output produced, including both fixed and variable costs.

Average Variable Cost

The total variable costs (costs that change with the level of output) divided by the quantity of output produced.

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