Refer to the following table when answering the following questions.
Table 2.4: U.S. and Eurozone (18 Economies) Nominal GDP in 2015
-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.
A) 1.9 times the size of
B) the same size as
C) 0.8 times the size of
D) 1.6 times the size of
E) 1.7 times the size of

Question

Refer to the following table when answering the following questions.
Table 2.4: U.S. and Eurozone (18 Economies) Nominal GDP in 2015 
-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.
A) 1.9 times the size of 
B) the same size as 
C) 0.8 times the size of 
D) 1.6 times the size of 
E) 1.7 times the size of

Quizplus · Accepted Answer

We can see from the table that the U.S. nominal GDP in 2015 was $18.037 trillion and the eurozone's nominal GDP in 2015 was €10.963 trillion. To compare the two economies, we need to convert the eurozone's GDP into dollars using the exchange rate at that time, which was €1 = $1.11. Thus, the eurozone's GDP in dollars was $10.963 trillion x $1.11/€1 = $12.156 trillion. Therefore, the ratio of the U.S. GDP to the eurozone's GDP is $18.037 trillion / $12.156 trillion = 1.48. This means that the U.S. economy is 1.6 times the size of the eurozone's economy.

Refer to the Following Table When Answering the Following Questions