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Sloan [31]
4 years ago
14

Determine which direction the PPC will shift as a result of these major events. (Hint there are only 2 shifts Left (drop) and Ri

ght (in-cress).)
1.) Educated and skilled workers begin migrating to other countries on a large scale.
2.) A epidemic wipes out one-third of the country's population.
3.) Private businesses come together to sponsor college education for low-income students.
4.) the government builds an extensive network of highways to facilitate cargo transportation.
History
1 answer:
Lorico [155]4 years ago
5 0

PPC stands for Purchasing Power Parity, which is a manner of determining exchange rates between two countries, by establishing a ratio between the purchasing powers of the two currencies. Purchasing power is referred to the amount of goods and services that can be purchased with a certain quantity of a specific currency.

In the end,PPC determines the amount that consumers in a certain economy can buy considering their income, which is valued in the national currency. PPC increases when people are able to buy more goods with the same amount of a currency than before, hence, when the exchange rate of that currency in relation to other currency increases.

  • Drops in PPC will ocurr when situations 1) 2)
  • Increases in PPC would take place when 3) 4)

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