Give three reasons why the purchasing power parity condition

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Reference no: EM13987131

1. Describe aggregate supply from a classical economist’s perspective.

2. P(t) = US$2 per coconut; E(t) = MX$1 per US$; P ROW(t) = MX$3 per coconut. a. What is the real exchange rate? b. Does purchasing power parity hold?

3. Give three reasons why the purchasing power parity condition often does not hold.

Reference no: EM13987131

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