Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 21.3, Problem 4RQ
To determine
Explain PPP and how it helps in making valid international comparisons of real GDP.
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why are International comparisons of GDP misleading
There are two issues that become apparent when considering GDP on a global basis. When comparing GDPs, can these factors be included, and what are they?
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Chapter 21 Solutions
Macroeconomics
Ch. 21.1 - Prob. 1RQCh. 21.1 - Prob. 2RQCh. 21.1 - Prob. 3RQCh. 21.2 - Prob. 1RQCh. 21.2 - Prob. 2RQCh. 21.2 - Prob. 3RQCh. 21.2 - Prob. 4RQCh. 21.2 - Prob. 5RQCh. 21.3 - Prob. 1RQCh. 21.3 - Prob. 2RQ
Ch. 21.3 - Prob. 3RQCh. 21.3 - Prob. 4RQCh. 21.3 - Prob. 5RQCh. 21 - Prob. 1SPACh. 21 - Prob. 2SPACh. 21 - Prob. 3SPACh. 21 - Prob. 4SPACh. 21 - Prob. 5SPACh. 21 - Prob. 6SPACh. 21 - Prob. 7SPACh. 21 - Prob. 8SPACh. 21 - Prob. 9APACh. 21 - Prob. 10APACh. 21 - Prob. 11APACh. 21 - Prob. 12APACh. 21 - Prob. 13APACh. 21 - Prob. 14APACh. 21 - Prob. 15APACh. 21 - Prob. 16APACh. 21 - Prob. 17APACh. 21 - Prob. 18APACh. 21 - Prob. 19APACh. 21 - Prob. 20APACh. 21 - Prob. 21APACh. 21 - Prob. 22APACh. 21 - Prob. 23APACh. 21 - Prob. 24APACh. 21 - Prob. 25APACh. 21 - Prob. 26APACh. 21 - Prob. 27APACh. 21 - Prob. 28APA
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Similar questions
- Global GDP has two issues. Which considerations should be considered while comparing GDPs?arrow_forwardWhy do we subtract import spending from total expenditures while calculating the GDP?arrow_forwardWhen examining GDP on a global scale, two issues become apparent. Is it conceivable to take these factors into account when comparing GDPs, and what exactly are these factors?arrow_forward
- Why is better to use HDI rather than GDP to look at the development of a country?arrow_forwardIs it reasonable or does it make sense, that while US exports are added to GDP, US imports are subtracted from GDP?arrow_forwardto use GDP to measure differences in living standards across countries.?arrow_forward
- Is the underground economy included in GDP?arrow_forwardWhen we consider the global GDP, we find two issues. Is it conceivable to take these factors into consideration when comparing GDPs, and what exactly are they?arrow_forwardWhat are the main components of measuring GDP with what is demanded? (briefly)arrow_forward
- Discuss the problems when compiling the GDP by production method.arrow_forwardCalculate the PPP-adjusted GDP for each of the four countries, using the information found in the table below. Instructions: Round your answers to the nearest dollar. Country Ona Rye Zolfo Avon GDP ($) 9,000 12,800 14,100 23,100 Price level (%) 8 -24 -12 23 PPP-adjusted GDP 8,333 -3,072 16,022.73 18800 Marrow_forwardHow should we calculate a value for the things that GDP does not currently measure?arrow_forward
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