21 Question 1 (2 points) Purchasing-power parity theory does not hold at all times because 24 O many goods are not easily transported and the same goods produced in different countries may be imperfect substitutes. the same goods produced in different countries are perfect substitutes for each other. 27 consumer preferences are different across countries. O 30 prices are different across countries. Question 2 (2 points) 33 GDP is defined as the value of all goods and services produced within a country in a given period of time. 5 36 value of all goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time. 38 39 O value of all final goods and services produced within a country in a given period of time. value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time. 41 42 Question 3 (2 points) Figure 33-5 44 45 LRAS SRAS