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hungry22 hungry22
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A month ago
Explain the concept of PPP.
Textbook 

Macroeconomics


Edition: 3rd
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KP20131KP20131
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A month ago
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More solutions for this book are available here
The PPP framework is used to convert aggregate incomes into common units. The idea is to adjust aggregate incomes so that a dollar can purchase the same bundle of commodities in any country. To perform this adjustment, one can choose a representative bundle of commodities and calculate what it costs in different countries. Then, using the cost of the bundle in each country relative to its cost in the United States, one can obtain a measure of each country's aggregate income in PPP-adjusted U.S. dollars.

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hungry22 Author
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A month ago
Correct Slight Smile TY
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Yesterday
Good timing, thanks!
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2 hours ago
Thank you, thank you, thank you!
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