EBK MACROECONOMICS (FOURTH EDITION)
4th Edition
ISBN: 9780393616125
Author: Jones
Publisher: YUZU
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Question
Chapter 2, Problem 8E
(a)
To determine
Determine the ratio of country J’s
(b)
To determine
Determine the ratio of country J’s GDP to real GDP.
(c)
To determine
Explain the difference between two numbers.
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India has a GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. The exchange rate is 50 rupees per U.S. dollar. Calculate the GDP per capita of India as measured in U.S. dollars.
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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.
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EBK MACROECONOMICS (FOURTH EDITION)
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