Question: What is question solution c and d from? Thank you! GDP PPP 1. Use the following table to answer the following questions. Country Production Price
What is question solution c and d from? Thank you!
GDP PPP 1. Use the following table to answer the following questions. Country Production Price of TV Production Price of GDP in GDP of TV sets sets in local of haircuts haircuts in local exchange currency local currency rate currency Ae 56 $142 1402 S5e $14842 $14842 212 28 15e 2e 6182 $309 $1484 $3912 a. Find the exchange rate GPD and the exchange rate ratio of GDP between the two countries. 309 : 1484 1: 4.8 b. Use Purchasing Power Parity to find the ratio of GDP between the two countries. Let your market basket be 10 TV sets and 10 haircuts. Find the PPP GPD and the PPP ratio of GDP between the two countries 391 : 14844 1 : 3.794 Evaluate the currency using exchange rate and PPP. C. Assume a citizen from country A is going to country B. Evaluate if B's currency is over-valued or under-valued. -0.21 so undervalued by 21%- d. Assume a citizen from country B is going to country A. Evaluate if A's currency is over-valued or under-valued. 0.27 so overvalued by 27% GDP PPP 1. Use the following table to answer the following questions. Country Production Price of TV Production Price of GDP in GDP of TV sets sets in local of haircuts haircuts in local exchange currency local currency rate currency Ae 56 $142 1402 S5e $14842 $14842 212 28 15e 2e 6182 $309 $1484 $3912 a. Find the exchange rate GPD and the exchange rate ratio of GDP between the two countries. 309 : 1484 1: 4.8 b. Use Purchasing Power Parity to find the ratio of GDP between the two countries. Let your market basket be 10 TV sets and 10 haircuts. Find the PPP GPD and the PPP ratio of GDP between the two countries 391 : 14844 1 : 3.794 Evaluate the currency using exchange rate and PPP. C. Assume a citizen from country A is going to country B. Evaluate if B's currency is over-valued or under-valued. -0.21 so undervalued by 21%- d. Assume a citizen from country B is going to country A. Evaluate if A's currency is over-valued or under-valued. 0.27 so overvalued by 27%
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