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Author Question: Purchasing Power ParityIf the GDP deflator in the United States is 137, and the GDP deflator in ... (Read 68 times)

desireelg_7

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on: Nov 23, 2022

Question 1

Purchasing Power Parity

A manicure costs $26 in the United States and 48 yuan in China. If the exchange rate is 6.2 yuan per dollar, purchasing power parity predicts that the dollar cost of a manicure in China should be ________.
◦ $7.74
◦ $161.20
◦ $4.19
◦ $1.85

Question 2

Purchasing Power Parity

If the GDP deflator in the United States is 137, and the GDP deflator in Australia is 164, purchasing power parity predicts that the exchange rate in the long run will be ________ Australian dollars per U.S. dollar.
◦ 1.51
◦ 1.20
◦ 0.84
◦ 1.97
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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Marked as best answer by desireelg_7 on Nov 23, 2022

ElaneShive

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Reply #1 on: Nov 23, 2022
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desireelg_7

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Reply 2 on: Nov 23, 2022
Gracias!

milbourne11

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Reply 3 on: Yesterday
Wow, this really help

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