If absolute PPP holds, then relative PPP will also hold
Indicate whether the statement is true or false
TRUE
Explanation: If the levels of the variables (prices and exchange rates) hold, then changes in these variables should hold as well. But, not vice-versa.
Economics
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A worsening of a country's terms of trade means that its export prices are falling relative to its import prices
Indicate whether the statement is true or false
Economics
Keynesian policies focus on _____while neoclassical policies focus on __________.
a. long-run potential GDP; actual GDP b. aggregate supply; aggregate demand c. aggregate demand; aggregate supply d. actual GDP; long-run potential GDP
Economics