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IgorC [24]
2 years ago
11

Purchasing power parity does not hold in the short to medium run because:____.

Business
1 answer:
maria [59]2 years ago
8 0

Answer:

some goods aren't internationally traded

Explanation:

Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.

It is used to measure and compare prices at different locations.

The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.

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Perfect competition refers to a fictitious market structure. If there is perfect competition, there are no monopolies.

The following characteristics of this kind of structure are crucial:

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1 year ago
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3 years ago
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