Exercise 8.10 (Consumption Baskets and PPP Exchange Rates) Following up with the theme of exercise 8.9, suppose that the table of quantities and prices is now given by United States Argentina Good Quantity Price Quantity Price Grain 10 1 10 1 Energy 10 2 10 2 Again, U.S. prices are expressed in dollars and Argentine prices in pesos. The typical consumption basket in the United States contains 1 unit of each good, while the typical consumption basket in Argentina contains 1.5 units of grain and 0.5 units of energy. Both goods are freely traded internationally and the law of one price holds for each type of good. Calculate the dollar value of GDP in Argentina in the following alternative ways: 1. At market exchange rates. 2. At PPP exchange rates using for each country its own basket. 3. At PPP exchange rates using the U.S. basket. 4. At PPP exchange rates using the Argentine basket.