In 1973, the GDP deflator was 45 0 in Switzerland and 34 3 in the United States (with 1995 100) In 2001, it was 103 2 in Switzerland and 112 1 in the United States The exchange rate of the Swiss franc was SF3 1648 per dollar in 1973 and SF1 6876 in 2001 Did the relative PPP theory hold between Switzerland and the United States between 1973 and 2001 Why

Question: In 1973, the GDP deflator was 45.0 in Switzerland and 34.3 in the United States (with 1995 = 100). In 2001, it was 103.2 in

In 1973, the GDP deflator was 45.0 in Switzerland and 34.3 in the United States (with 1995 = 100). In 2001, it was 103.2 in Switzerland and 112.1 in the United States. The of the Swiss franc was SF3.1648 per dollar in 1973 and SF1.6876 in 2001. Did the relative PPP theory hold between Switzerland and the United States between 1973 and 2001? Why?

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