Table 2.4: U.S. and Eurozone (18 Economies) Nominal GDP in 2015

Eurozone nominal GDP ( billions) 10,455

U.S. nominal GDP ($ billions) $18,036

Dollar/euro exchange rate $1.10/1

PEZ/PUS 0.85

1.Consider Table 2.4. The value of eurozone nominal GDP in U.S. dollars is ________ billion (I do not know why the answer is A. $13,531? I think the answer should be 10,455/1.1=9505)

a. $13,531 d. $16,396

b. $9,505 e. $21,219

c. $11,501

2.Consider Table 2.4. The value of the eurozone nominal GDP in U.S. dollars adjusted for price

differences is ________ billion. (The answer is E)

a. $9,775 d. $8,079

b. $13,530 e. $16,863

c. $11,182

3.Consider Table 2.4. When we convert the eurozone's nominal GDP into dollars and adjust for price

differences, the U.S. economy is about ________ times the size of the eurozone economy. (Answe is B)

a. 1.6 d. 1.4

b. 0.6 e. 0.8

c. 1.9

4.Consider Table 2.4. When we convert the eurozone's nominal GDP into dollars but do not adjust for

price differences, the U.S. economy is about ________ the eurozone economy. (Answer is D)

a. 1.9 times the size of d. 1.6 times the size of

b. the same size as e. 1.7 times the size of

c. 0.8 times the size of