its the total value of goods and services produced in an economy in a given time period
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what is the pupose of national income?
National income is used to assess changes in living standards in a country, and between countries, over time. But it is not a perfect measure.
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why national income may not be relaibe
composition of gdp, sustainability, externalities, working hours and leisure time
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what is Purchasing Power Parity (PPP)?
This is an additional exchange rate adjustment that equalises the price of internationally traded goods across countries.
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benefits of PPP?
The PPP exchange rate remains fairly constant year round, so it can be easily compared. Exchange rates will often get closer to the PPP as time passes. Knowing the PPP will allow you to track and predict exchange rate relationships.
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what is arbitrage?
it is when its cheaper to buy goods in one country than another
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Other cards in this set
Card 2
Front
what is the pupose of national income?
Back
National income is used to assess changes in living standards in a country, and between countries, over time. But it is not a perfect measure.
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