Consider a simple economy that produces two goods: stickers and donuts. The following table shows the prices and quantities of the goods over a three-year period. Stickers Donuts Price Quantity Price Year (Dollars per sticker) (Number of stickers) (Dollars per donut) Quantity (Number of donuts) 2019 2 215 3 155 2020 st 4 135 3 210 2021 2 150 3 190 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Real GDP (Base year 2019, dollars) GDP Deflator Year 2019 2020 2021 From 2020 to 2021, nominal GDP and real GDP ' The inflation rate in 2021 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP does not include the value of intermediate goods and services, but nominal GDP does. Real GDP includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is.
Consider a simple economy that produces two goods: stickers and donuts. The following table shows the prices and quantities of the goods over a three-year period. Stickers Donuts Price Quantity Price Year (Dollars per sticker) (Number of stickers) (Dollars per donut) Quantity (Number of donuts) 2019 2 215 3 155 2020 st 4 135 3 210 2021 2 150 3 190 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Real GDP (Base year 2019, dollars) GDP Deflator Year 2019 2020 2021 From 2020 to 2021, nominal GDP and real GDP ' The inflation rate in 2021 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP does not include the value of intermediate goods and services, but nominal GDP does. Real GDP includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 1SCQ: Table 22.4 shows the fruit prices that the typing college student purchased from 2001 to 2004. What...
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Transcribed Image Text:Consider a simple economy that produces two goods: stickers and donuts. The following table shows the prices and quantities of the goods over a
three-year period.
Stickers
Donuts
Price
Quantity
Price
Year
(Dollars per sticker) (Number of stickers) (Dollars per donut)
Quantity
(Number of donuts)
2019
2
215
3
155
2020
st
4
135
3
210
2021
2
150
3
190
Use the information from the preceding table to fill in the following table.
Nominal GDP
(Dollars)
Real GDP
(Base year 2019, dollars) GDP Deflator
Year
2019
2020
2021
From 2020 to 2021, nominal GDP
and real GDP
'
The inflation rate in 2021 was
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Real GDP does not include the value of intermediate goods and services, but nominal GDP does.
Real GDP includes the value of exports, but nominal GDP does not.
Real GDP is not influenced by price changes, but nominal GDP is.
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