Give the answer of all compulsory. Suppose people can live a maximum of 100 years. Lifeexpectancy in the U.S. is 78 years, and average consumption per-capita is $35,000. In Bolivia life expectancyis 68 years and average per-capita consumption is $3,700. Construct the following measures of welfare:a. Compute relative consumption nOLCUSb. Assuming that average per-capita consumption is equal to GNP per-capita, compute an HDI index forboth countries.c. Suppose everyone in a country has the same consumption and utility is given by1-ou(c, a) = ū+with o = 0.5, ū = 48.1a,Compute the Jones-Klenow measure of living standards for Bolivia.d. Which of the three previous measures of welfare would you choose and why?

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Answered: Suppose people can live a maximum of…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 7E

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