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What is Purchasing power
One problem in using exchange rate when comparing GDP per capita between countries is that is fluctuates quite a lot. A way of avoiding dependence on exchange rate is to use purchasing power.
#“Nominal GDP declined between 2008 and 2009, therefore the GDP deflator must also have declined.”
derive balance of payment line graphically
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can a country have a current account deficit and a capital account deficit at the same time?
factor contribute long run trend of term of trade in developing country
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Assume that an economy's GDP Y=5000. Also assume that the government runs a deficit where tax revenue T=1000 and government expendituresG= 1500. The consumption function is represe
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