Macroeconomics (Fourth Edition)
Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Chapter 2, Problem 7E

(a)

To determine

Determine the ratio of Indian GDP to US GDP.

(b)

To determine

Determine the ratio of real GDP.

(c)

To determine

Explain the difference between two numbers.

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28.           A terms-of-trade index that equals 150 indicates that compared to the base year of 100, a. it requires a greater output of domestic goods to obtain the same amount of foreign goods. b. it requires a lesser amount of domestic goods to obtain the same amount of foreign goods. c. the price of exports has risen from $100 to $150. d. the price of imports has risen from $100 to $150.
India has 1.3 billion people and a GDP of 196 trillion Indian rupees. 75 rupees are exchanged for every dollar. Determine the GDP per person in India, expressed in US dollars.
Further background: • China primarily exports electrical equipment. This would include computers and optical and medical equipment. It's also a big exporter of low-cost apparel, fabric, and textiles. A lot of China's exports are manufactured products made for U.S. companies. These companies pay to ship raw materials to China. There the low-cost factory workers process the materials into the final product. The top import categories in 2017 were: electrical machinery ($147 billion), machinery ($110 billion), furniture and bedding ($32 billion), toys and sports equipment ($26 billion), and plastics ($16 billion). • Almost 75 percent of Canada's exports go to the United States. Canada has abundant supplies of oil, gas, and uranium. Its main exports include oil, vehicles and wood. The top import categories in 2017 were: mineral fuels ($73 billion), vehicles ($56 billion), machinery ($21 billion), special other (returns) ($14 billion), and plastics ($11 billion). • Mexico sends…
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