Consider a simple economy that produces two goods: beers and donuts. The following table shows the prices and quantities of the goods over a three-year period.Year202020212022Year202020212022Price(Dollars per beer)343BeersUse the information from the preceding table to fill in the following table.Nominal GDP(Dollars)Quantity(Number of beers)260120155From 2021 to 2022, nominal GDPThe inflation rate in 2022 wasPrice(Dollars per donut)2Real GDP(Base year 2020, dollars) GDP Deflator22, and real GDPDonutsQuantity(Number of donuts)160220140Why is real GDP a more accurate measure of an economy's production than nominal GDP?Real GDP includes the value of exports, but nominal GDP does not.Real GDP is not influenced by price changes, but nominal GDP is.O Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods andservices an economy consumes.

Gross domestic product measures the market value of final goods and services produced by a nation…

Consider a simple economy that produces two goods: beers and donuts. The following table shows the prices and quantities of the goods over a three- year period. Year 2020 2021 2022 Price (Dollars per beer) 3 4 Beers 3 Quantity (Number of beers) 260 120 155 Donuts Price (Dollars per donut) 2 2 2 Use the information from the preceding table to fill in the following table. Quantity (Number of donuts) 160 220 140

Consider a simple economy that produces two goods: beers and donuts. The following table shows the prices and quantities of the goods over a three- year period. Year 2020 2021 2022 Price (Dollars per beer) 3 4 Beers 3 Quantity (Number of beers) 260 120 155 Donuts Price (Dollars per donut) 2 2 2 Use the information from the preceding table to fill in the following table. Quantity (Number of donuts) 160 220 140

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider a simple economy that produces two goods: beers and donuts. The following table shows the prices and quantities of the goods over a three-
year period.
Year
2020
2021
2022
Year
2020
2021
2022
Price
(Dollars per beer)
3
4
3
Beers
Use the information from the preceding table to fill in the following table.
Nominal GDP
(Dollars)
Quantity
(Number of beers)
260
120
155
From 2021 to 2022, nominal GDP
The inflation rate in 2022 was
Price
(Dollars per donut)
2
Real GDP
(Base year 2020, dollars) GDP Deflator
2
2
, and real GDP
Donuts
Quantity
(Number of donuts)
160
220
140
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Real GDP includes the value of exports, but nominal GDP does not.
Real GDP is not influenced by price changes, but nominal GDP is.
O Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and
services an economy consumes.

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Consider a simple economy that produces two goods: pencils and oranges. The following table shows the prices and quantities of the goods over a three-year period. Pencils Oranges Price Price Quantity Quantity (Dollars per pencil) (Number of pencils) (Dollars per orange) (Number of oranges) Year 2016 125 1 200 2017 2 170 230 2018 4 150 4 170 Use the information from the preceding table to fill in the following table. Real GDP Nominal GDP (Dollars) (Base year 2016, dollars) GDP Deflator Year 2016 2017 2018 From 2017 to 2018, nominal GDP , and real GDP The inflation rate in 2018 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes. Real GDP does not include the value of intermediate goods and services, but nominal GDP does. Real GDP is not influenced by price changes, but nominal GDP is.
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