PriceQuantityYear (Dollars per beer) (Number of beers)20162295201712520181204Year201620172018BeersNominal GDP(Dollars)Use the information from the preceding table to fill in the following table.From 2017 to 2018, nominal GDPThe inflation rate in 2018 wasPriceQuantity(Dollars per donut) (Number of donuts)195225180Real GDP(Base year 2016, dollars) GDP Deflator4and real GDPDonutsWhy 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.Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.Real GDP is not influenced by price changes, but nominal GDP is.

Nominal GDP measures the economic production at market prices in the current year.Real GDP measures…

From 2017 to 2018, nominal GDP The inflation rate in 2018 was , and real GDP 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. Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. Real GDP is not influenced by price changes, but nominal GDP is.

From 2017 to 2018, nominal GDP The inflation rate in 2018 was , and real GDP 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. Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. Real GDP is not influenced by price changes, but nominal GDP is.

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

Price
Quantity
Year (Dollars per beer) (Number of beers)
2016
2
295
2017
125
2018
120
4
Year
2016
2017
2018
Beers
Nominal GDP
(Dollars)
Use the information from the preceding table to fill in the following table.
From 2017 to 2018, nominal GDP
The inflation rate in 2018 was
Price
Quantity
(Dollars per donut) (Number of donuts)
195
225
180
Real GDP
(Base year 2016, dollars) GDP Deflator
4
and real GDP
Donuts
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.
Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.
Real GDP is not influenced by price changes, but nominal GDP is.

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Chapter Problem 4 The GDP price index in the United States in 2016 was about 106, and real GDP in 2016 was $17.7 trillion (2012 dollars). The GDP price index in the United States in 2017 was about 108, and real GDP in 2017 was $18.1 trillion (2012 dollars). Calculate nominal GDP in 2016 and in 2017 and the percentage increase in nominal GDP between 2016 and 2017. >>> Answer below to 1 decimal place. Nominal GDP in 2016 is $ trillion. Enter your answer in the answer box and then click Check Answer. parts remaining Clear All 吕0 000 000 :こ、 esc F4 F5 F6 F7 F1 F2 F3 24 %23
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Suppose that this year’s nominal GDP is $16 trillion. To account for the effects of inflation, we construct a price-level index in which an index value of 100 represents the price level 5 years ago. Using that index, we find that this year’s real GDP is $15 trillion. Given those numbers, we can conclude that the current value of the index is: a. Higher than 100. b. Lower than 100. c. Still 100.
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