_____________________Effect is an effect that describes the relationship between an increase in productivity, higher exchange rates and an increase in wage growth. This effect shows that when there is an increased level of productivity in the tradable goods sector of a country, there tends to be a higher exchange rate, consumer prices are also likely to be higher
The Balassa-Samuelson effect states that productivity differences between the production of tradable goods in different countries explain large observed differences in wages and in the price of services and between purchasing power parity and currency exchange rates. It suggests that an increase in wages in the tradable goods sector of an emerging economy will also lead to higher wages in the non-tradable (service) sector of the economy. The accompanying increase in prices makes inflation rates higher in faster-growing economies than it is in slow-growing, developed economies .
In the morning Ram and Shyam were talking to each other face to face. If Ram’s shadow was exactly right to Shyam. Which direction Shyam is facing?
Point D is 3m to the West of Point R. Point A is 6 m to the North of point D. Point K is 16 m to West of point A. Point K forms a midpoint of the vertic...
What is the shortest distance between point M and point N?
The length and breadth of a park are 8 m and 6 m respectively. A man runs along all the four side and finally along a diagonal order. How much total dis...
S is in which direction with respect to V?
Rakesh walks 4 km to west and turns to his right and walks 6 km and turns right and walks 6 km and finally turns to his right. Which direction is he fac...
In which direction is S with respect to T?
X is 13m south east of Y and Z is 12m south of Y. In which direction is Z with respect to X?
Two Bikes start from the opposite places of a highway 250km apart. First Bike A runs for 45km and takes a right turn and then runs 25km. It then turns l...
Arpit started from his office and travelled 2 km towards west, then he turned right and travelled 2 km and then turned left and travelled 3 km. From th...