The inclusion of nontradable goods in price indexes makes the calculation of PPP more difficult.

Name: The inclusion of nontradable goods in price indexes makes the calculation of PPP more difficult.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Nontradable goods, which cannot be easily bought or sold across borders, introduce complexities in comparing prices across countries, making the calculation of purchasing power parity (PPP) more challenging due to variations in local prices and consumption patterns.

The Inclusion of Nontradable Goods in Price Indexes Makes the Calculation