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. Beers Donuts Price Quantity Price Quantity (Dollars per beer) (Number of beers) (Dollars per donut) (Number of donuts) 2 245 2 180 4 130 2 195 2 115 2 155 Use the information from the preceding table to fill in the following table. Year Nominal GDP Real GDP (Base Year 2016, dollars) GDP Deflator (Dollars) 2016 2017 2018 From 2017 to 2018, nominal GDP ________________, and real GDP __________ . The inflation rate in 2018 was ___________.
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. Beers Donuts Price Quantity Price Quantity (Dollars per beer) (Number of beers) (Dollars per donut) (Number of donuts) 2 245 2 180 4 130 2 195 2 115 2 155 Use the information from the preceding table to fill in the following table. Year Nominal GDP Real GDP (Base Year 2016, dollars) GDP Deflator (Dollars) 2016 2017 2018 From 2017 to 2018, nominal GDP ________________, and real GDP __________ . The inflation rate in 2018 was ___________.
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.
| Beers |
Donuts
|
|||
|---|---|---|---|---|
|
|
Quantity
|
Price
|
Quantity
|
|
|
(Dollars per beer)
|
(Number of beers)
|
(Dollars per donut)
|
(Number of donuts)
|
|
| 2 | 245 | 2 | 180 | |
| 4 | 130 | 2 | 195 | |
| 2 | 115 | 2 | 155 |
Use the information from the preceding table to fill in the following table.
|
Year
|
Nominal
|
Real GDP
(Base Year 2016, dollars)
|
GDP Deflator
|
|---|---|---|---|
|
(Dollars)
|
|||
| 2016 |
|
|
|
| 2017 |
|
|
|
| 2018 |
|
|
|
From 2017 to 2018, nominal GDP ________________, and real GDP __________ .
The inflation rate in 2018 was ___________.
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