Exercise%20with%20Purchase%20Power%20Parity_ECON%204310

Exercise%20with%20Purchase%20Power%20Parity_ECON%204310 -...

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ECON 4310: ECONOMIC DEVELOPMENT IN GLOBAL PERSPECTIVE PRACTICE WITH PURCHASING POWER PARITY Assume for Thailand: a) GDP per capita is 275,000 baht b) The official exchange rate is 25 baht per $, or .04 $ per baht c) A basket of common goods and services in Thailand costs 80,000 baht d) The same basket costs $2,000 in the U.S. 1. 1. What is the implied ppp exchange rate in baht per $ and in $ per baht?
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Unformatted text preview: 2. Was the official rate of 25 baht per $ over or under valued compared to the ppp rate? 3. What is Thailands GDP per capita in $ using the official exchange rate (simple exchange rate conversion)? 4. What is Thailands GDP per capita in $ using the estimated ppp exchange rate?...
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Exercise%20with%20Purchase%20Power%20Parity_ECON%204310 -...

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