Question: Do not only give the solutions, but also clearly explain your derivations.Macro help please Exercise 2 Suppose that there are two countries, The Netherlands (NL)

Do not only give the solutions, but also clearly explain your derivations.Macro help please

Exercise 2 Suppose that there are two countries, The Netherlands (NL) and the U.S. Both countries produce two goods, good 1 and good 2. Prices in The Netherlands are expressed in euro (E), U.S. prices are expressed in U.S. dollars ($). The table below gives production quantities and prices of both goods in both countries. NL U.S. Quantity . of good 1 35 150 . of good 2 40 75 Price . of good 1 Eg $15 . of good 2 E20 $20 Construct a basket of good 1 and good 2 that costs $1 in the U.S., with the same composition as U.S. GDP (i.e. make sure that the share of each of both goods in the basket is the same as their share in U.S. GDP). Compute then the following variables: 1. Compute the quantity of good 1 in this basket (91.b). 2. Compute the quantity of good 2 in this basket (q2,b). Introduce now a fictitious currency, called the international dollar (IS). Assume that the price in international dollars of the basket which you constructed above (i.e. of the basket that consists of the quantities of goods 1 and 2 which you computed in the two previous questions) is exactly I$ 1. Compute then the following variables: 3. Compute GDP in the U.S. in I$ (Yus). 4. Compute the price in The Netherlands in euro of the basket which you constructed above (pb, NL). 5. Compute GDP in The Netherlands in I$ (YNL)
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