For which of the following type of countries is the divergence betwee capita measured at official exchange rates and at purchasing power parity (PPP) likely to be largest? the least developed countries the advanced economies open market economies industrialized countries
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- Suppose we compare GDP per person in Botswana and the United States in two ways: first using the nominal exchange rate and then again using the relative price-based conversion. The GDP per person in Botswana calculated using the exchange rate method is $800 while that calculated using the relative price-based conversion is $1,000. What is the relative price ratio between Botswana and the U.S. (i.e., the price level for Botswana relative to the United States)? Round your answer to the nearest two-decimal digit number. For instance, if your numerical answer is 1.458, enter 1.46 in the space below. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Which measure shows more equality among countries around the world—GNI calculated atexchange rates or GNI calculated at purchasing power parity? Explain.State true/False Difference between value of exports and imports of goods and services is called trade balance.
- Ifthe value of a nation's imports exceeds the value of its exports,which of the following is NOT true? a.Net exports are negative. b.GDP is less than the sum of consumption, investment, and government purchases. c.Domestic investment is greater than national saving. d.The nation is experiencing a net outflow of capitaIf U.S. net exports are negative, then net capital outflow is A. negative, so American assets bought by foreigners are greater than foreign assets bought by Americans. B. positive, so foreign assets bought by Americans are greater than American assets bought by foreigners. C. positive, so American assets bought by foreigners are greater than foreign assets bought by Americans. D. negative, so foreign assets bought by Americans are greater than American assets bought by foreigners.What would be the effect of a devaluation on a country’s imports and exports? If a country imports most ofthe goods included in the basket of goods and servicesused to calculate the CPI, what do you think the effectwill be on this country’s inflation rate?
- Cross country comparisons of GDP per capita typically use purchasing power parity equivalent exchange rates, which are a measure of the long run equilibrium value of an exchange rate. In fact, we used PPP equivalent exchange rates in this module. Why could using market exchange rates, which sometimes change dramatically in a short period of time, be misleading?Suppose that Poland had exports of $100 billion in 2014 and imports of $150 billion. What were its net capital flows in that year? Give two examples of transactions that are part of the net capital flows of Poland, and indicate whether they enter the sum as positive numbers or negative numbers.Discuss the difference in GDP per capita using the two different exchange rates. Which one is larger? Why? Peru’s GDP per capita in USD using Official Exchange Rate: USD 6,000Peru’s GDP per capita in USD using PPP Exchange Rate: USD 17,418.23
- When exports and imports are exactly equal for a country, this is called... Net imports. Trade surplus. ⒸNet exports. Trade deficit. Balanced trade.True or false questions. Need both. GDP measures the gap between a country's exports and its imports. Any country with a trade surplus necessarily has a healthy economy (e.g. is experiencing an economic expansion).Many U.S. business leaders argue that the current state of U.S. net exports is the result ofa. U.S. export subsidies.b. free trade policies of foreign governments.c. unproductive U.S. workers.d. unfair foreign competition.