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Q. Explain why the exchange rate model based on PPP is a long-run theory.
Answer: PPP theory is a financial approach to the exchange rate. It is a long-run theory for the reason that it doesn't allow for price rigidities. It assumes that prices are able to adjust right away to maintain full employment as well as PPP.
what is opportunity cost thory explain it with example
I need help interpreting an article. PLEASE!
review the general equilibrium conditions under autarky and given free trade using the opportunity cost theory of trade
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