Explain why economists do not use exchange rates to compare standards of living across countries. Also, discuss what economists do to avoid these problems
What will be an ideal response?
Answers should include discussions about the effects of variations in exchange rates and of systematic differences in prices across countries. The use of PPP numbers reduces the problems associated with these two issues.
Economics
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How are rule-based policies similar to adaptive expectations?
What will be an ideal response?
Economics
When comparing the standard of living in two countries it is important to adjust total output for differences in:
A. political systems. B. geographic area. C. population. D. employment levels.
Economics