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Suppose that the economy of Tunisia in which there are two products (Y which costs 20 Dinars, and Y which costs 30 dinars.there are two units of each good. In the US, prices are $1 for X and $3 for Y. The exchange rate is 1 Dollar for 60 Dinars:
Question1 Determine the dollar value of gross national income in Tunisia evaluated at exchange rate?
Question2 What is the dollar value of gross national income in Tunisia evaluated at PPP? Comparing these two values, what do we learn?
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