1
Q
what is the acronym for purchasing power parity
A
PPP
2
Q
what is purchasing power parity
A
the relative costs of goods and services in different countries. - involves looking at a basket of goods to determine effective living costs
3
Q
why is the purchasing power parity needed
A
we need a way to compare the volume or real GDP using an exchange rate that reflects the same purchasing power
4
Q
what is the Big Mac index
A
measures currency against standard product
5
Q
why is the Big Mac used as the product
A
it is universally available and a standardized product
6
Q
what currency is used for the Big Mac index
A
the US dollar
macro economics
flashcards
Decks in class (29)
# Cards
-
circular flow of income17
-
measures of economic activity26
-
production possibility frontier (PPF)32
-
aggregate demand23
-
investment and spending18
-
pre learning week 524
-
pre learning week 66
-
multiplier5
-
aggregate supply33
-
Macroeconomic equilibrium and objectives16
-
Meaning and representation of economic growth12
-
Economic growth34
-
Output gaps and the trade cycle17
-
inflation and deflation18
-
benefits & costs of inflation16
-
sectors of the economy5
-
long run aggregate supply11
-
Multiplier24
-
PPP6
-
GDP and standards of living7
-
inflation and deflation6
-
CPI7
-
inflaation7
-
Specialisation and pattern of trade19
-
Trading Blocs6
-
Theme 4 revision78
-
Theme 462
-
UK - case study7
-
4.4108
