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In the US, the price of a Big Mac is $3.5. In China, the price of a Big Mac is 12. a. What is the
In the US, the price of a Big Mac is $3.5. In China, the price of a Big Mac is 12.
a. What is the exchange rate of Chinese Yuan under purchasing power parity?
b. What is the dollar price of Big Mac in China, if the actual exchange rate is $0.15/?
c. Is the Chinese Yuan overvalued or undervalued? By how much?
d. If Chinas GDP in 2018 is 80 Trillion, what is its Nominal GDP in USD (use actual rate)? What is its Real GDP in USD (use PPP rate)?
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1st Edition
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