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Nursesn Nursesn
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Scenario: The price of a standard basket of goods in Country A is 10 pesos. The price of the same basket of goods in country B is 25 francs and $5 in the United States. Country A has an income per capita of 60,000 pesos, and country B has an income per capita of 100,000 francs. Assume full employment in both countries.


Refer to the scenario above. If GDP remains constant but the population in Country B grows by 50 percent over the next 5 years, how will the standard of living change in Country B?

▸ People will be more likely to live below the absolute poverty line.

▸ No definite conclusion can be made without knowing Country B's initial population.

▸ On average, people will live above the poverty line, but some people may live below it.

▸ GDP per capita will still be well above the absolute poverty line.
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Macroeconomics

Macroeconomics


Edition: 3rd
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keeton1989keeton1989
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Nursesn Author
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A year ago
Thanks
Mcb
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Yesterday
this is exactly what I needed
bioc
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2 hours ago
Thanks for your help!!
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