pack your passports, we're going to New Orleans

I'm grading Intro Macro exams, and I came across a wrong answer so spectacularly (and depressingly) funny that I have to share. The question I'm currently grading is about whether certain transactions would be included in the U.S.'s GDP. One of the transactions is the U.S. government spending $200,000 doing reconstruction in New Orleans. This would be included in GDP, since government spending gets included (as long as it is spent on a final good or service, and not, say, as a transfer payment like unemployment insurance). Someone wrote on their exam, however, that this would not be included in GDP, because New Orleans is not within our national borders. Where does she think Louisiana is? Mexico? France? Or has she been living in a cave with her eyes shut and her ears plugged for the past couple years, thus never having heard of New Orleans?

At least I'm finally getting some work done. Grading is the easiest thing I have to do, but it's also the most boring, so it's probably good to get it out of the way.