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Questions and Answers
What is the price level index of the United States in terms of the Big Mac Index?
What is the price level index of the United States in terms of the Big Mac Index?
- 9.24
- 124
- 7.46
- 1.00 (correct)
What is the percentage difference in the cost of living between Switzerland and the United States?
What is the percentage difference in the cost of living between Switzerland and the United States?
- 74%
- 46%
- 24% (correct)
- 124%
What is the formula to adjust the nominal GDP of a country to its PPP-adjusted GDP?
What is the formula to adjust the nominal GDP of a country to its PPP-adjusted GDP?
- Nominal dollars × (1 - Price level adjustment) (correct)
- Nominal dollars × Price Level Index
- Nominal dollars × (1 / Price level adjustment)
- Nominal dollars ÷ Price Level Index
What is the implication of a price level index of 124 in Switzerland?
What is the implication of a price level index of 124 in Switzerland?
What is the adjustments required to maintain the same standard of living in Switzerland compared to the US?
What is the adjustments required to maintain the same standard of living in Switzerland compared to the US?
What is the correct answer to the question of how much the uncle needs to earn in Switzerland to maintain the same standard of living?
What is the correct answer to the question of how much the uncle needs to earn in Switzerland to maintain the same standard of living?
What is the purpose of the Big Mac Index?
What is the purpose of the Big Mac Index?
What is the relationship between the price level index and the cost of living?
What is the relationship between the price level index and the cost of living?
What is the implication of a price level adjustment of 0.24?
What is the implication of a price level adjustment of 0.24?
What is the purpose of the PPP-adjusted GDP?
What is the purpose of the PPP-adjusted GDP?
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