You Are a Staff Economist for Your Local Bank and the Bank

Essay

You are a staff economist for your local bank and the bank manager asks you to calculate whether Qatar (QAT), Luxembourg (LUX), or the United States (USA) is biggest in per capita terms when adjusted for price differences. She gives you the following data table and asks you to fill in the missing values.

Population (column A) and GDP (D) are in millions. GDP in column D is in domestic currency, the euro for Luxembourg, the Qatari rial for Qatar, and the U.S. dollar for the United States. The exchange rate (B) is units of foreign currency per U.S. $1, and P_US /P_i is the relative price level for the United States and the other countries.

Table GDP, Population, and Exchange Rate Data in 2010
$\begin{array}{lccccccc}&&\text {exchange}&&\text {GDP}&\text {per capita GDP}&\text {per capita}&\text {PPP per capita}\\&\text {pop}&\text {rate}&\text {pus/pi}&\text {(mollion)}&\text{ national currency}&\text {GDP(\$s)}&\text {GDP(\$s)}\\\hline & (A) & (\mathrm{B}) & (\mathrm{C}) & (\mathrm{D}) & (\mathrm{E}) & (\mathrm{F}) & (\mathrm{G}) \\\hline \text { LUX } & 0.498 & 0.76 & 0.87 & 36,561 & - & - & - \\\text { QAT } & 0.841 & 3.64 & 1.01 & 470,422 & - & - & - \\\mathrm{USA} & 310.23 & 1.00 & 1.00 & 14,584,731 & - & - & - \\\hline\end{array}$