Suppose that in 2018, per-person GDP in the United States was $62,794, and in China, it was $9,770 (measured in 2011 U.S. dollars). It is accurate to say that the income level in the United States is than in China. Why is this comparison accurate? China is characterized by a larger share of household p higher in total output than the United States is. O The United States is characterized by a larger share of lower d production in total output than China is. O China is characterized by a higher share of industrial production in total output than the United States is. O The large difference in income between the United States and China exceeds any underestimate of China's GDP as the result of its larger share of household production.

Assume an economy in which only apple and orange are produced. In year 1, 200 million killograms of apple are produced and consumed and its price is $0.6 per kilogram, while 150 million killograms of orange are produced and consumed and its price is $0.7 per killogram. In year 2, 250 million kilograms of apple are produced and consumed and its price is $0.7 per kilogram, while 300 million kilograms of orange are prduced and its price is $0.8 per kilogram. (Show the results upto 1 decimal point when required) (a) If the base year is year 1 then the GDP price deflator in year 2 is (b) If the base year is year 2 then the GDP price deflator in year 1 is (c) If the base year is year 1 then the inflation rate between years 1 and 2 is (d) If the base year is year 2 then the inflation rate between years 1 and 2 is (e) The chain weighted inflation rate between year 1 and year 2 is % (f) If the base year is year 1 then CPI inflation rate is % % %

A typical U.S. worker today works fewer than 40 hours per week, while in 1890, he or she worked 60 hours per week. Does this difference in the length of work weeks matter in comparing the economic well-being of U.S. workers today with that of 1890? Or can we use the difference between real GDP per capita today and in 1890 to measure differ- ences in economic well-being while ignoring differences in the number of hours worked per week? Briefly explain.

FOOD Q ويه PP Que CLOTH 5. The above figure shows two isovalue lines V, and Va at the same relative price Po/Py. A and B are two production patterns. The quantities of cloth and food produced in each case are indicated by Qua: Qes and Qra: Qn respectively. Based on the above, which of the following is correct? A) When relative price - Po/Pr, GDP produced at A (VA) equals GDP produced at B (Vs) became they both lie on the same PPF. B) When relative price Po/P, GDP produced at A (VA) is greater than GDP produced at B (V). 1 C) If the nation produces at A when relative price PP, it is maximizing its GDP D) GDP is maximized at A if the relative price PPy decreases.

a. Using the following table to calculate GDP price deflator in 2021 and 2022, and the change in overall price level from 2021 to 2022 nominal GDP in 2021 was $104,000 in 2022 was $112,000 real GDP in 2021 was $84,000 and in 2022, $88,000 b. Consider an economy, only producing two good Apple and orange in both year one need to Ken the real GDP of this economy, increase between one and two, while the nominal GDP decreases or remain the same explain your answer with a numerical example   Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Consider an economy that produces wood, boats, and has a marketing agency.This year domestic wood production generates revenues of $80. Of this $80 worth of wood, $40were purchased by the boat producer and $40 were sold abroad to a foreign company. The woodproducer paid $40 worth of wages and $10 worth of taxes.The boat producer combines the services of the marketing agency, the wood it purchased from thewood producer, and $20 worth of labor (wages) to produce $120 worth of boats. Its revenues,which include a boat produced in the previous year and that was carried as inventory, are $130.Domestic families buy all these boats. This company pays $10 worth of taxes.The marketing agency, whose sole client is the boat company, generates a revenue of $40 whichis enough to cover its labor costs of $40. This company pays no taxes.The government in this economy uses the $20 worth of taxes and builds a port. The cost of theport is $40 that are paid to workers. This port is partially financed by…

In 2012, nominal GDP per capita in the US was $49.922. In Colombia, nominal GDP per capita was $7,855 the same year. Calculate the PPP-adjusted GDP for Colombia if the purchasing power of a given amount of dollars was 41% lower in the U.S. PPP-adjusted GDP Colombia $ (Round off to two decimal places)

Consider an economy consisting of only two companies: Oil Inc. and Electricity Inc. Electricity Inc. buys $400 worth of oil from Oil Inc. and uses it to produce electricity. It is owned by US nationals, its plant is based in the US, and its workers are all US nationals. It receives $1000 in revenue from the sale of electricity to the public (domestic) and has to pay $500 in wages. Oil Inc. is owned by US nationals and it operates two different oil extraction plants, one at home and the other in Saudi Arabia. The domestic plant pays $400 in wages to domestic workers and produces $2000 worth of oil. Out of this production $1600 is sold directly to the public domestically and $400 is sold to Electricity Inc. The foreign plant employs only foreigners. Its total wage bill is $300. It produces $1300 worth of oil out of which $500 is sent back to the US and sold to the public and the remaining $800 is sold in Saudi Arabia. A. The value added by Electricity Inc. is dollars. B. The value added…