For absolute purchasing power parity to exist, there must be no trade barriers.

Name: For absolute purchasing power parity to exist, there must be no trade barriers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Absolute purchasing power parity assumes that identical goods in different countries should have the same price when expressed in a common currency, which is only possible if there are no trade barriers such as tariffs or quotas that could affect the prices.

For Absolute Purchasing Power Parity to Exist, There Must Be