a) Use the following table to find the real GDP in 2012 and 2004.
|
Item
|
Quantity
(000s)
2004
|
Quantity
(000s)
2012
|
Price ($)
2004
|
Price ($)
2012
|
|
C
|
15
|
15
|
200
|
250
|
|
I
|
9
|
8
|
12
|
11
|
|
M
|
12
|
13
|
112
|
110
|
|
X
|
11
|
15
|
125
|
132
|
b) What is the growth rate?
c) Is the Big Mac overvalued or undervalued, and what does this suggest for that country's GDP?Explain how we deal with the problem of price differences between countries.