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rsteel rsteel
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A year ago
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. Assume Country A initially has a population of 10,000 people. If its population grows by 50 percent but its GDP remains constant, how will the standard of living change in Country B?

▸ GDP per capita increases by 33 percent.

▸ GDP per capita remains constant.

▸ GDP per capita decreases by 50 percent.

▸ GDP per capita decreases by 33 percent.
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Macroeconomics

Macroeconomics


Edition: 3rd
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tranle311tranle311
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A year ago
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rsteel Author
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A year ago
Thanks
avance37
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Yesterday
Thanks for your help!!
avance37
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2 hours ago
Correct Slight Smile TY
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