2) The Penn World Table includes several GDP figures. Suppose that you want to compare the standard of living in the Netherlands in 1985 with that of Poland in 2015. Which type of GDP is the best choice? a) CGDP° per capita, b) RGDP° per capita. c) RGDPN^ per capita. d) CGDP° per capita.

2) The Penn World Table includes several GDP figures. Suppose that you want to compare the standard of living in the Netherlands in 1985 with that of Poland in 2015. Which type of GDP is the best choice? a) CGDP° per capita, b) RGDP° per capita. c) RGDPN^ per capita. d) CGDP° per capita.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter23: Growth And Less Developed Countries

Section: Chapter Questions

Problem 1SQ

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Question

100%

a) CGDP° per capita,

b) RGDP° per capita.

c) RGDPN^ per capita.

d) CGDP° per capita.

3) The Penn World Table calculates world prices in dollars by writing equations for the prices in which they suppose that they know

a) the current exchange rates

b) the nominal GDPs

C) the real GDPs.

d) the purchasing power parity exchange rates.

Definition Definition Value of one unit of currency in terms of goods and services. Purchasing power refers to the ability of money to purchase goods and services at a particular point of time. As price levels in the economy increase, the purchasing power of one unit of currency decreases and vice versa.

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