The Balassa-Samuelson forecast can be used to predict changes in _____ over time and, therefore, can be used to predict ______ by adding in inflation changes.
A) income levels; real GDP growth rates
B) expectations; technology improvements
C) real GDP; unemployment rates
D) real exchange rates; nominal exchange rates
Correct Answer:
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Q48: When PPP holds, the Balassa-Samuelson forecast is:
A)
Q49: The Balassa-Samuelson model about exchange rates suggests
Q50: Suppose that the half-life of deviations from
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