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Suppose that the price of the same basket of goods differs between two countries (when measured in the same currency). Use the following table to
Suppose that the price of the same basket of goods differs between two countries (when measured in the same currency). Use the following table to indicate whether each row represents relative or absolute purchasing power parity (PPP). PPP Form Relative PPP Absolute PPP The rate of change of the prices of the baskets should be similar. The demand for each basket should adjust until the prices of the basket are equal
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