Using the FRED economic database (https://fred.stlouisfed.org/), let’s compare the GDP of the state of California with that of some countries, in this case, France and Canada. Because France’s GDP is in euros and Canada’s is in Canadian dollars, we will need to convert currencies. In addition, we would like to compare GDP over a similar basket of goods. Comparisons like this are called purchasing power parity (PPP) comparisons. After you have found real GDP for California, click Edit Graph, then click Add Line and find real GDP for France, looking for a series like “Expenditure-side Real GDP at Chained Purchasing Power Parities for France.” Now click Add Line again and find a similar series for Canada.

a. How do California, France, and Canada compare? What does this suggest about the U.S. economy and its role in the world economy? 

b. Using Google, find the population of each of these regions and then do a back-of-the-envelope calculation of real GDP per capita in, say, 2014 in each entity.