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Chapter 19: Problem 33

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 U.S. dollars?

Short Answer

Expert verified
The GDP per capita of the Czech Republic expressed in U.S. dollars is 3,600 U.S. dollars.

Step by step solution

01

Calculate GDP per Capita in Koruny

To find the GDP per capita in koruny, we'll need to divide the GDP of the Czech Republic by the population: GDP per capita (in koruny) = \( \frac{GDP}{population} \) GDP per capita (in koruny) = \( \frac{1,800,000,000,000}{20,000,000} \) = 90,000 koruny
02

Convert GDP per Capita to U.S. Dollars

Now that we have the GDP per capita in koruny, we'll use the exchange rate to convert it to U.S. dollars: GDP per capita (in US dollars) = \( \frac{GDP \ per \ capita \ (in \ koruny)}{Exchange \ rate} \) GDP per capita (in US dollars) = \( \frac{90,000}{25} \) = 3,600 U.S. dollars So, the GDP per capita of the Czech Republic expressed in U.S. dollars is 3,600 U.S. dollars.

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Most popular questions from this chapter

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?

Why must you avoid double counting when measuring GDP?

How do you convert a series of nominal economic data over time to real terms?

Which of the following are included in GDP, and which are not? a. The cost of hospital stays b. The rise in life expectancy over time c. Child care provided by a licensed day care center d. Child care provided by a grandmother e. A used car sale f. A new car sale g. The greater variety of cheese available in supermarkets h. The iron that goes into the steel that goes into a refrigerator bought by a consumer.

Would you usually expect GDP as measured by what is demanded to be greater than GDP measured by what is supplied, or the reverse?
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