Purchasing Power Parity Does NOT Hold in the Short to Medium

question 47

Multiple Choice

Purchasing power parity does NOT hold in the short to medium run because

• A)exports don't equal imports.
• B)exchange rates fluctuate too much.
• C)most business cycles are caused by shocks to aggregate demand.
• D)countries produce different goods.

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Definitions:

Anima/Animus

The soul; the archetype of the opposite sex of the individual.

Shadow Archetype

A concept in Jungian psychology representing the unconscious aspects of the personality which the conscious ego does not identify in itself.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.

Unconscious

The Unconscious is a part of the mind that stores feelings, thoughts, urges, and memories that are outside of our conscious awareness, influencing behavior and decisions.