Japanese GDP in 2007 was 517 trillion yen, while U.S. GDP was $13.7 trillion. The average nominal exchange rate in 2007 was 118 yen per dollar. Japan had a higher price level than the U.S. Specifically, the price level in Japan (converted to dollars) divided by the price level in the U.S. was equal to 1.074 in 2007. Assume, only one good is produced in the world.

1. What is the ratio of Japanese GDP to U.S. GDP if we don't take into account the differences in price levels and simply use the nominal exchange rate for conversion?

2. What is the ratio of real GDP in Japan to real GDP in the U.S. in common prices?