Purchasing power parity grasp for laptops

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Q1. Will the unemployment impact be bigger or smaller when we have elastic supply as opposed to inelastic supply? Why?

Q2. What would be the new equilibrium exchange rate that would make purchasing power parity grasp for laptops as if U.S. $ cost and the Canadian dollar price stayed constant?

Q3. Define creative effectiveness. Explain what does productive efficiency implies allocative efficiency? Explain.

Reference no: EM138495

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