1. What has been the long-run growth in WV per capita income (Y/Pop), or "standard of living"? Use the WV, NY, and US per capita income (Y/Pop) variables from the data table above to construct a graph from 1929 to 2020 using LINE 1, LINE 2, and LINE 3. NOTES: These variables are nominal income in WV, NY, and the US because real income (preferred) is unavailable so the variables also reflect some changes in relative prices between states. However, inflation should be essentially the same for all states over long periods of time because they all use US dollars. Remember thatpopulation differencesacross states do not explain differences the standard of living because the income variables are per capita.

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QUESTIONS: Over the long run (1930 to the present), how has the standard of living in WV grown compared to the standard of living in NY and in the US? Using the latest data (2020), how much more income per person do residents of NY have than residents of WV? Calculate the ratio of NY income to US income and the ratio of WV income to US income. In percentage terms (%), how much higher is NY income above US income and how much lower is WV income below US income? Based on what we learned in the textbook and class lectures, what are the mostly likely explanations for this large difference between the standard of living in NY and WV?

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