Let’s look at GDP and foreign exchange in Iceland. We can extract the following data from the World Bank, which maintains a database of economic data for all countries:

Fill in the blanks in the table using the formulas from the assigned reading (a bit of algebra is required):

	2010	2011	2012	2013	2014	2015	2016
Nominal GDP ($ billions)	1627.11	1708.31	1787.68	1899.68	2020.55
GDP deflator	100.00	102.97	106.35			119.57	122.10
Real GDP ($ billions)				1753.35	1791.93	1869.19	2009.03
Population (total)	318041	319014	320716	323764	327386	330815	335439
Official exchange rate (Krona per US$)	122.24	115.95	125.08	122.18	116.77	131.92	120.81

Answer these questions:

What was real GDP per capita in 2015? ___________________.

What was real GDP per capita in 2016? ___________________.

Using your answers above, compute the real GDP per capita growth rate for 2016: ___________.

In 2012, your instructor went to Iceland for an academic conference. The Icelandic currency is called the Krona. While there, he spent:

62,540 krona on hotel

10,630 krona on food

15,635 krona on souvenirs

How much did he spend in US dollars? __________________.

Answer rating: 100% (QA)

To fill in the blanks and answer the questions we can use the provided data and some formulas To cal... View the full answer