Let country A's price level be 100. Let country B's price level be 65. the GDP...
Let country A's price level be 100. Let country B's price level be 65. the GDP of country A is 95,000 A-dollars and the GDP of country B is 100,000 B-dollars. The exchange rate between the two countries is 1.10 A-dollars per B-dollar.
What is the GDP of country A, expressed in PPP, using country B as a reference country?
Homework Answers
Answer :-
GDP of country A Express in PPP = GDP of Country A in US dollars / Exchange Rate between Two countries
= $95000/1.10
= $86363.64
so So GDP of country A is $86363.64
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