Question 1 The price of the Big Mac meal in Saudi Arabia costs 27 SAR and it costs 2.384 KD in Kuwait, the nominal exchange rate is 0.08 KD per one SAR.Calculate the real exchange rate?Show if the PPP apply between Saudi Arabia and Kuwait?

Question 2 According to table 17; Saudi's GDP on the third quarter of 2018 is 661,934,293,980 SAR, consumption is 224,534,925,365 SAR, government expenditure is 138,554,191,315 SAR, Investment is 144,740,343,285 SAR.Calculate net export.

Question 3 what happen to Saudi Arabia's GDP when average income in Bahrain increases?Answer this question according to the demand side.

Question 4 one of the six debates of the macroeconomic policy is:

Should the central bank set zero inflation target?

Briefly Explain this debate.