Is big mac overvalued or undervalued and what does this

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Reference no: EM13451825

a) Use the following table to find the real GDP in 2012 and 2004.

Item	Quantity (000s) 2004	Quantity (000s) 2012	Price ($) 2004	Price ($) 2012
C	15	15	200	250
I	9	8	12	11
M	12	13	112	110
X	11	15	125	132

b) What is the growth rate?

c) Is the Big Mac overvalued or undervalued, and what does this suggest for that country's GDP?Explain how we deal with the problem of price differences between countries.

Reference no: EM13451825

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