Problem
Why might it be that relative PPP holds better in the long run than the short run? (Think about how international trading firms might react to large and persistent cross-border differences in the prices of a tradable good.) Can you think of any forces that might help bring about long-run PPP for nontradble goods?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.