Purchasing power parity is defined as A) an equal value of ...

[SGallaher96]

Purchasing power parity is defined as
 
  A) an equal value of money across currencies.
  B) a currency whose value rises.
  C) an equal value of interest rates across currencies.
  D) a currency whose value falls.
  E) a constant value for a currency.

Question 2

Cost-push inflation starts with
 
  A) an increase in potential GDP.
  B) a decrease in aggregate demand.
  C) a decrease in aggregate supply.
  D) an increase in aggregate supply.
  E) an increase in aggregate demand.

[whitcassie]

Answer to Question 1

A

Answer to Question 2

C