1. In 2011, country A's GDP was $200,000 and its population was 1500.country B had aGDP of $18000, and its population was 175.

a. What measure would you use to compare the standard of living between these countries?

b. Which country has the highest standard of living? Why?

c. If the world consists of only these two countries, what fraction of GDP does each country produce?

2.The following are the data for the year 2006

Private consumption5000 Gross investment 1000

Government Budget deficit200 Governemnt taxed 500

Grovernemnt Transfers200 Exports 600

Imports800 2005 Capital stock 10000

Decepciation200

a.How much was governemnt spending on goods and services in 2006?

b.Calculat GDP for 2006.

c.Is this country a net foregin lender or borrower? By howmuch?

What share of GDP was devoted to consumption and what sahre of to investment