Principles Of Macroeconomics V 8.0
18th Edition
ISBN: 9781453378717
Author: Taylor
Publisher: BOSTON ACADEMIC (DBA FLAT WORLD)
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Textbook Question
Chapter 6, Problem 28P
Last year, a small nation with abundant forests cut down
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1800 tons of pomegranates a year is a lot of sweetness!
So, you can get 71 Afghanis for $1? How cool. Does that mean you can buy a lot of stuff in Afghanistan for only $1? How do you know that your purchasing power in Afghanistan is stronger than in the United States?
Yes, with an exchange rate of 71 Afghan Afghani for 1 US dollar, you can buy many things in Afghanistan for just $1. However, purchasing power isn't solely determined by the exchange rate. It also depends on the cost of goods and services in each country. For example, if a meal in Afghanistan costs 200 Afghanis, you would need about $2.82 to buy that meal in US dollars (since 200 Afghanis divided by 71 Afghanis per dollar equals approximately $2.82). So, while the exchange rate allows you to get more Afghanis for your dollars, you also need to consider how much things cost in Afghanistan.
Now that the world seems to like Afghani stuff and is buying more of it, does that mean your…
Chapter 6 Solutions
Principles Of Macroeconomics V 8.0
Ch. 6 - Country A has export sales of 20 billion,...Ch. 6 - Which of the following are included in GDP, and...Ch. 6 - Using data from Table 19.5 how much of the nominal...Ch. 6 - Without looking at Table 19.7, return to Figure...Ch. 6 - According to Table 19.7, how often have recessions...Ch. 6 - According to Table 19.7, how long has the average...Ch. 6 - According to Table 19.7, how long has the average...Ch. 6 - Is it possible for GDP to rise while at the same...Ch. 6 - The Central African Republic has a GDP of...Ch. 6 - Explain briefly whether each of the following...
Ch. 6 - What are the main components of measuring GDP with...Ch. 6 - What are the main components of measuring GDP with...Ch. 6 - Would you usually expect GDP as measured by what...Ch. 6 - Why must you avoid double counting when measuring...Ch. 6 - What is the difference between a series of...Ch. 6 - How do you convert a series of nominal economic...Ch. 6 - What are typical GDP patterns for a high-income...Ch. 6 - What are the two main difficulties that arise in...Ch. 6 - List some of the reasons why economists should not...Ch. 6 - U.S. macroeconomic data are among the best in the...Ch. 6 - What does GDP not tell us about the economy?Ch. 6 - Should people typically pay more attention to...Ch. 6 - Why do you suppose that U.S. GDP is so much higher...Ch. 6 - Why do you think that GDP does not grow at a...Ch. 6 - Cross country comparisons of GDP per capita...Ch. 6 - Why might per capita GDP be only an imperfect...Ch. 6 - How might you measure a green GDP?Ch. 6 - Last year, a small nation with abundant forests...Ch. 6 - The prime interest rate is the rate that banks...Ch. 6 - A mortgage 105m is a loan that a person makes to...Ch. 6 - Ethiopia has a GDP of 8 billion (measured in U.S....Ch. 6 - In 1980, Denmark had a GDP of 70 billion (measured...Ch. 6 - The Czech Republic has 3 GDP of 1,800 billion...
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