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Honors Economics Chapter 19 The Macroeconomic Perspective Questions 1. Country A has export sales of $20 billion, government purchases of $1,000 billion, business investment is $50 billion, imports are $40 billion, and consumption spending is $2,000 billion. What is the dollar value of GDP? 2. Which of the following are included in GDP, and which are not? ' The cost of hospital stays The rise in life expectancy over time Child care provided by a licensed day care center ' Child care provided by a grandmother ' A used car sale ' A new car sale The greater variety of cheese available in supermarkets ' The iron that goes into the steel that goes into a refrigerator bought by a consumer. 3. The Central African Republic has a GDP of 1,107,689 million CFA francs and a population of 4.862 million. The exchange rate is 284.681CFA francs per dollar. Calculate the GDP per capita of Central African Republic. 4. Explain briey whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines ' A greater variety of goods become available to consumers Infant mortality declines 5. Ethiopia has a GDP of $8 billion (measured in US. dollars) and a population of 55 million. Costa Rica has a GDP of $9 billion (measured in US. dollars) and a population of 4 million. Calculate the per capita GDP for each country and identify Which one is higher. 6. In 1980, Denmark had a GDP of $70 billion (measured in US. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in US dollars) and a population of 5.3 million. By what percentage did Denmark's GDP per capita rise between 1980 and 2000? 7. The Czech Republic has a GDP of 1,800 billion koruny. The exchange rate is 25 koruny/U.S. dollar. The Czech population is 20 million. What is the GDP per capita of the Czech Republic expressed in US. dollars