Macroeconomics
13th Edition
ISBN: 9780134744452
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 4.3, Problem 4RQ
To determine
Explain PPP and how it helps in making valid international comparisons of real
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Chapter 4 Solutions
Macroeconomics
Ch. 4.1 - Prob. 1RQCh. 4.1 - Prob. 2RQCh. 4.1 - Prob. 3RQCh. 4.2 - Prob. 1RQCh. 4.2 - Prob. 2RQCh. 4.2 - Prob. 3RQCh. 4.2 - Prob. 4RQCh. 4.2 - Prob. 5RQCh. 4.3 - Prob. 1RQCh. 4.3 - Prob. 2RQ
Ch. 4.3 - Prob. 3RQCh. 4.3 - Prob. 4RQCh. 4.3 - Prob. 5RQCh. 4 - Prob. 1SPACh. 4 - Prob. 2SPACh. 4 - Prob. 3SPACh. 4 - Prob. 4SPACh. 4 - Prob. 5SPACh. 4 - Prob. 6SPACh. 4 - Prob. 7SPACh. 4 - Prob. 8SPACh. 4 - Prob. 9APACh. 4 - Prob. 10APACh. 4 - Prob. 11APACh. 4 - Prob. 12APACh. 4 - Prob. 13APACh. 4 - Prob. 14APACh. 4 - Prob. 15APACh. 4 - Prob. 16APACh. 4 - Prob. 17APACh. 4 - Prob. 18APACh. 4 - Prob. 19APACh. 4 - Prob. 20APACh. 4 - Prob. 21APACh. 4 - Prob. 22APACh. 4 - Prob. 23APACh. 4 - Prob. 24APACh. 4 - Prob. 25APACh. 4 - Prob. 26APACh. 4 - Prob. 27APACh. 4 - Prob. 28APA
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- Retrieve the following data from The World Bank database (http //databank.worldbank. org/data/ home.aspx) for India, Spain, and South Africa for the most recent year available: • GDP in constant international dollars or PPP • Population • GOP per person in constant international dollars • Mortality rate, infant (per 1,000 live births) • Health expenditure per capita (current U.S. dollars) • Life expectancy at birth, total (years)arrow_forwardWhen thinking about the GDP on a global basis, two concerns become immediately obvious. When comparing GDPs, is it possible to take these things into account, and if so, what precisely are they?arrow_forwardIs GDP per capita a good measure of a country's standard of living? Is GDP a good measure of a country's well-being? How should a country’s well-being be measured?arrow_forward
- Having both table as a reference answer both questions a. Is there a better way to classify a country other than the use of GDP and per capita? Explainb. How is a country classified by the World Bank and the United Nations (UN)arrow_forwardwhy are International comparisons of GDP misleadingarrow_forwardIs it reasonable or does it make sense, that while US exports are added to GDP, US imports are subtracted from GDP?arrow_forward
- Explain the following identity: C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR) 2. How is the above identity be used to measure GDP in Pakistan? 3. What are the disadvantages of using the above identity to measure economic development?arrow_forwardWhat are some additional strengths and weaknesses of the Human Development Index as a comparative measure of human welfare? If you were designing the HDI, what might you do differently, and why?arrow_forwardto use GDP to measure differences in living standards across countries.?arrow_forward
- There are two issues that become apparent when considering GDP on a global basis. When comparing GDPs, can these factors be included, and what are they?arrow_forwardAre nations with large underground economies likely to be happier or unhappier than one would expect, given their measured levels of real per capita GDP? Explain.arrow_forwardTo convert Gross Domestic Product to Net Domestic Product, which of the following is correct? Question 5Answer a. GDP – Capital Formation b. GDP – Depreciation c. GDP + Capital Formation d. GDP + Depreciationarrow_forward
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