Assignment:
So the calculation we did before where wrong as we had to choose a base year and we didn't before so I had to do the calculation all again.
You have to show knowledge and understanding for this part for the history behind the numbers the graph what they mean? You have to interpret the graph in a professional way ... you have to the calculation ready so use the number in there when u explain.
Say that in this relative pppimlooking at monthly data from 2000-2018 and is monthly data and I will test the theory if hold or not.
I chose May 2010 as A BASE YEAR YOU HAVE TO EXPLAIN WHAT HAPPENED IN 2010 in the economic one thing can be the global crisis. And that's why I chose is as base year and find other relevant reasons .. and I did the calculation based on that my calculation are right so base you explanations on the numbers I have found please.
According to that you have to explain exchange rate and ppp before and after the base period may 2010 equilibrium what happened before the base year ?and what make it change after the base year?
What is the relationship between exchange rate and ppp and how this explain the theory is the real words and data been explained as the theory stated yes (you can say ppp holds because exchange rate converge (move forward) to ppp , even if we have some deviations )they move In the same direction the first graph what it shows?
What happened to the prices of product before and after base year be critical.
Then you have to explain why I had this deviation numbers and explain the deviation graph ( it can be because comparing developed and developing country transportation cost and tariff and check all other reasons please we have to focuson explaining the deviation in the graph in details by referring them to the history behind that and critically discuss talk about the main picks in the deviation graphs and what cause the deviation in what year that happened and why what happened at that time causing deviation?
For example what happened in 2000 to have a dramatical decrease ,2006,2008, 2009, 2010, 2013 etc you have to focus on the main picks increase or decrease or constant history behind data with references please.
The relationship between the deviation and the exchange rate and PPP?
And check why the deviation is like this?
Explain in detail the graphs and the history behind that?
HOW THE RELATIVE ppp explain the 2 graph?