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Macroeconomics 5th Edition by Olivier Blanchard
Edition 5ISBN: 978-0132159869Macroeconomics 5th Edition by Olivier Blanchard
Edition 5ISBN: 978-0132159869 Exercise 2
Assume that the average consumer in Mexico and the average consumer in the United States buy the quantities and pay the prices indicated in the following table: 
a. Compute U.S. consumption per capita in dollars.
b. Compute Mexican consumption per capita in pesos.
c. Suppose that 1 dollar is worth 10 pesos. Compute Mexico's consumption per capita in dollars.
d. Using the purchasing power parity method and U.S. prices, compute Mexican consumption per capita in dollars.
e. Under each method, how much lower is the standard of living in Mexico than in the United States Does the choice of method make a difference
a. Compute U.S. consumption per capita in dollars.
b. Compute Mexican consumption per capita in pesos.
c. Suppose that 1 dollar is worth 10 pesos. Compute Mexico's consumption per capita in dollars.
d. Using the purchasing power parity method and U.S. prices, compute Mexican consumption per capita in dollars.
e. Under each method, how much lower is the standard of living in Mexico than in the United States Does the choice of method make a difference
Explanation
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a.
Per capita consumption is the average...
Macroeconomics 5th Edition by Olivier Blanchard
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