PPP-adjustment involves:
A. recalculating economic statistics to account for differences in price levels across countries.
B. a method very similar to adjusting to cost-of-living increases using a price index like the CPI.
C. recalculating a variable like GDP per capita so we can compare someone's standard of living across countries.
D. All of these statements are true.
D. All of these statements are true.
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A rise in the price level brings a ________ in the real wage rate that ________ profits which leads to ________ production
A) rise; reduces; increasing B) rise; reduces; decreasing C) fall; increases; increasing D) rise; increases; decreasing E) fall; decreases; decreasing
In the long run, firms in monopolistic competition earn zero economic profit because
A) firms are free to enter and exit. B) their products are similar but slightly different. C) of over-reliance on product marketing. D) of collusion among the various sellers. E) their demand curves are horizontal.