|Group activity: Josko Joras (A), December 2012
For an open economy
GDP = C + I + G + (X – M).
However it’s important to realise that imports don’t subtract from GDP.
Read more about the Big Mac index at The Economist. For more on how Argentina games it, see:
- “Argentina likely manipulating Big Mac prices to keep inflation seemingly lower“, Public Radio International, February 7th 2012
Here’s an intro to Balance of Payments:
This page ties into Chapter 10 of Economics: A Complete Guide for Business
|Learning Objectives: Perform foreign exchange calculations. Understand Balance of Payments|