In your political science course you are studying the European Union (EU). During lectures your professor...

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In your political science course you are studying the European Union (EU). During lectures your professor mentions that Austria's GDP per capita (in euros) is higher than Germany's. You and your friends are suspicious since you believe that differences in price levels were not taken into account: you suspect that Germany's GDP per capita after adjusting for purchasing power parity is higher than Austria's. You collect data for Austria (AUT) and Germany (DEU) from Eurostat and the Penn World Tables. Population (column A) and GDP (D) are in millions. GDP in column D is in local currency units (millions of euros). The exchange rate (B) is units of foreign currency per U.S. dollar, and P₁/Pus is the price level for other countries relative to the United States. Compute PPP per capita GDP ($US) for Austria. Round your answer to the nearest dollar. Table 2.6: Data for Four European Union Countries, 2017 Exchange GDP Country Pop Rate P/Pus(mil. LCU) AUT DEU A B C D 8.9 0.893 0.930 397,518 GDP PPP per per GDP Capita (mil. PPP capita (LCU) $US) GDP GDP (SUS) (SUS) E T 83.5 0.893 0.9033,473,260 (Source: Eurostat and Penn World Tables 10.0) 1 F 1 T 17 G H T In your political science course you are studying the European Union (EU). During lectures your professor mentions that Austria's GDP per capita (in euros) is higher than Germany's. You and your friends are suspicious since you believe that differences in price levels were not taken into account: you suspect that Germany's GDP per capita after adjusting for purchasing power parity is higher than Austria's. You collect data for Austria (AUT) and Germany (DEU) from Eurostat and the Penn World Tables. Population (column A) and GDP (D) are in millions. GDP in column D is in local currency units (millions of euros). The exchange rate (B) is units of foreign currency per U.S. dollar, and P₁/Pus is the price level for other countries relative to the United States. Compute PPP per capita GDP ($US) for Austria. Round your answer to the nearest dollar. Table 2.6: Data for Four European Union Countries, 2017 Exchange GDP Country Pop Rate P/Pus(mil. LCU) AUT DEU A B C D 8.9 0.893 0.930 397,518 GDP PPP per per GDP Capita (mil. PPP capita (LCU) $US) GDP GDP (SUS) (SUS) E T 83.5 0.893 0.9033,473,260 (Source: Eurostat and Penn World Tables 10.0) 1 F 1 T 17 G H T

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AUT GDP PER CAPITA 397518 89 4466 GDP US DOLLAR GDP LCU ... View the full answer