Question

If a nation has a GDP of 100 billion euros, a population of 10 million, and the exchange rate for the euro is 1.10 = 1$, what is the GDP per capita of this nation in U.S. dollars (rounded to the nearest dollar)?

Answer 1

Answer:

If the nation has a GDP of 100 billion Euros and a population of 10 million people, its GDP per capita in Euros is $ 10,000 (100,000,000,000 / 10,000,000 = 10,000).

Now, if said GDP per capita in US dollars were calculated, taking into account that the exchange rate is 1.10 dollars for every 1 euro, the GDP per capita in euros must be multiplied by the exchange rate, which gives us a result of a GDP per capita in dollars of $ 11,000 (10,000 x 1.10 = 11,000).

Therefore, the GDP per capita of this nation in U.S dollars is of $11,000.