Purchasing Power Parity Does NOT Hold in the Short to Medium

question 98

Multiple Choice

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

• A)exports don't equal imports.
• B)exchange rates aren't internationally traded.
• C)some goods aren't internationally traded.
• D)most business cycles are caused by shocks to aggregate demand.

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Definitions:

Methane

A simple hydrocarbon with the chemical formula CH4, known as the simplest alkane and a primary component of natural gas.

Presence

The existence or occurrence of a particular substance or entity within a specific environment or context.

Experimental Conditions

The specific settings, parameters, and environment under which scientific experiments are conducted.

Chloromethane

A colorless and highly flammable gas with a slightly sweet odor, used in chemical synthesis.