Consider a simple economy that produces two goods: pens and muffins. The following table shows the prices and quantities of the gonds over a three- year period. Pens Muffins Price Quantity Price Quantity (Dollars per pen) (Number of pens) (Dollars per muffin) (Number of nmuffins) Year 2018 125 155 2019 135 3. 210 2020 2. 125 165 Use the information from the preceding table to fil in the following table. Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator Year 2018 2019 2020 From 2019 to 2020, nominal GDP and real GDP The inflation rate in 2020 was Why is real GOP a more accurate measure of an economy's production than nominal GDP? O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. O Real GDP is not influenced by price changes, but nominal GDP is. O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.
Consider a simple economy that produces two goods: pens and muffins. The following table shows the prices and quantities of the gonds over a three- year period. Pens Muffins Price Quantity Price Quantity (Dollars per pen) (Number of pens) (Dollars per muffin) (Number of nmuffins) Year 2018 125 155 2019 135 3. 210 2020 2. 125 165 Use the information from the preceding table to fil in the following table. Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator Year 2018 2019 2020 From 2019 to 2020, nominal GDP and real GDP The inflation rate in 2020 was Why is real GOP a more accurate measure of an economy's production than nominal GDP? O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. O Real GDP is not influenced by price changes, but nominal GDP is. O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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