Consider an economy that produces only computers. The quantity of computers and the price of computers in four successive years are given in the table. A. Compare the nominal GDP growth rates and the real GDP growth rates for 2015, 2016, and 2017. What do you conclude? Which of the two accurately measures the GDP and why?
Consider an economy that produces only computers. The quantity of computers and the price of computers in four successive years are given in the table. A. Compare the nominal GDP growth rates and the real GDP growth rates for 2015, 2016, and 2017. What do you conclude? Which of the two accurately measures the GDP and why?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider an economy that produces only computers. The quantity of computers and the
A. Compare the nominal
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![Quantity of
Computers
Year
Price of
Nominal
Real GDP
Nominal
Real GDP
(in 2015
dollars)
Computers
GDP
GDP
(in 2015
Growth
dollars)
Rate
Growth Rate
2014
2100
$1,000
2,100,000 2,331,000
2015
1800
$1,110
1,998,000 1,998,000
-4.9%
-14.3%
2016
2000
$1,050
2,100,000
2,220,000
5.1%
11.1%
2017
2040
$1,120
2,284,800
2,264,400
8.8%
2%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F677ad7da-de9b-4e0f-ae2a-f49b7a12c9fa%2Fd98acf06-3eda-4dc9-ab12-f66f779e0981%2Fpt394ro_processed.png&w=3840&q=75)
Transcribed Image Text:Quantity of
Computers
Year
Price of
Nominal
Real GDP
Nominal
Real GDP
(in 2015
dollars)
Computers
GDP
GDP
(in 2015
Growth
dollars)
Rate
Growth Rate
2014
2100
$1,000
2,100,000 2,331,000
2015
1800
$1,110
1,998,000 1,998,000
-4.9%
-14.3%
2016
2000
$1,050
2,100,000
2,220,000
5.1%
11.1%
2017
2040
$1,120
2,284,800
2,264,400
8.8%
2%
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