Scenario 1: Suppose there are two countries that have the same nominal GDP. Do they have...

Scenario 1: Suppose there are two countries that have the same nominal GDP. Do they have the same standard of living? Why or why not?
Scenario 2: Suppose there are two countries and nominal GDP in one country is twice as large as the other country. Do they have the same standard of living? Why or why not?

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Expert Solution

In both scenario they do not have same standards of living

Rahul Sunny answered 4 weeks ago

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