Problem Set 5 F22 updated.pdf x + X C File | C:/Users/sohee/OneDrive/Desktop/Problem%20Set%205%20F22%20updated.pdf . . . 2 of 2 Q + 2 | D Page view A Read aloud ) Add text Draw Highlight Erase | 8 | 6 9 3 The Gravity Equation The United States, Germany, and China are among the world's largest producers. To answer the following questions, assume that their markets are monopolistically competitive, and use the gravity equation with B = 93 and n = 1.25. Real GDP in 2021 ($ billions) Distance from the United States (miles) + China 15,802 7,245 Germany 3,535 4,885 United States 20,339 1. Using the gravity equation, compare the expected level of trade between the United States and Germany and between the United States and China. 2. The distance between Beijing and Berlin is 4,571 miles. Would you expect more trade between China and Germany or between China and the United States? Explain what variable (i.e., country size or distance) drives your result. A 8 . C Partly cloudy Q Search : 195 ENG 1 0 5:13 PM 11/25/2022