Question

In recent years, the BRIC (Brazil, Russia, India and China) countries have received much attention due to their growing importance in the world economy. Now that you are equipped with knowledge about macroeconomic data, you can take a first-hand look at how quickly these countries have been growing, how much inflation they have, and how developed they are when compared to the USA.

	Brazil	Russia	India	China	USA
Nominal GDP in 2013 (local currency, Million)	4,844,815	66,755,300	113,550,735	56,884,521	16,768,100
Nominal GDP in 2000 (local currency, Million)	1,179,482	7,305,600	21,774,127	9,921,455	10,284,800
Price Level in 2013 (index 2010=100)	124.12	121.63	132	111.1	106.8
Price Level in 2000 (index 2010=100)	51.4	30.75	54.2	81	79
Population in 2013 (in Million)	200.4	143.5	1,252	1,357	316.1
Population in 2000 (in Million)	174.5	146.6	1,042	1,263	282.2
Dollar/Local Currency Exchange rate 2013	1/2.4	1/32.6	1/62.18	1/6.07	1
PPP Conversion Factor 2013	1/1.9	1/19.47	1/18.24	1/3.36	1

The PPP conversion factor is the price in US dollars of a basket of goods (chosen by the World Bank) in the USA divided by the price in local currency of a comparable basket in that country.

For each of the BRIC countries and the US, over the period 2000-2013, answer the following:

1.What was the average annual inflation rate?

2.What was the average annual growth rate of population?

3.What was the average annual growth rate of real GDP?

4.What was the average annual growth rate of real GDP per capita?

5.For each of the BRIC countries, in the year 2013, how did real income per capita compare to that in the US? (To make this comparison, report real GDP per capita for each country as a percentage of the US.) Report two answers, one based on market exchange rates and one adjusted for differences in purchasing power.