International Economics 10th Edition by Paul Krugman,Maurice Obstfeld ,Marc Melitz

تمرين 8

Anyone who has visited Japan knows it is an incredibly expensive place; although Japanese workers earn about the same as their U.S. counterparts, the purchasing power of their incomes is about one-third less. Extend your discussion from question to explain this observation. (Hint: Think about wages and the implied prices of nontraded goods.)