In 2023, nominal GDP is_ than real GDP. This means that the purchasing power of the currency in 2023 is purchasing power of the currency in the base year. Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes. Real GDP is not influenced by price changes, but nominal GDP is. Real GDP does not include the value of intermediate goods and services, but nominal GDP does. The growth rate of real GDP per capita between 2022 and 2023 is than the Assume that real GDP per capita is a good measure of living standards. Which of the following sentences best describes what happened in this economy between 2022 and 2023? Living standards This is true because of which of the following?
In 2023, nominal GDP is_ than real GDP. This means that the purchasing power of the currency in 2023 is purchasing power of the currency in the base year. Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes. Real GDP is not influenced by price changes, but nominal GDP is. Real GDP does not include the value of intermediate goods and services, but nominal GDP does. The growth rate of real GDP per capita between 2022 and 2023 is than the Assume that real GDP per capita is a good measure of living standards. Which of the following sentences best describes what happened in this economy between 2022 and 2023? Living standards This is true because of which of the following?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:4. Calculating real GDP and real GDP per capita
The following table provides the population size, price-level index, and nominal GDP of a hypothetical economy over a four-year period.
Complete the table by calculating real GDP and real GDP per capita from 2020 to 2023 using the data provided.
Nominal GDP
Real GDP per Capita
Real GDP
(Dollars)
(Dollars)
(Dollars)
12,000
16,500
Year Population Size Price-Level Index
2020
2021
2022
2023
100
110
120
150
80
100
125
120
In 2023, nominal GDP is
purchasing power of the currency in the base year.
30,000
36,000
Living standards
15,000
16,500
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
24,000
30,000
than real GDP. This means that the purchasing power of the currency in 2023 is
The growth rate of real GDP per capita between 2022 and 2023 is
150
150
Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and
services an economy consumes.
O Real GDP is not influenced by price changes, but nominal GDP is.
Real GDP does not include the value of intermediate goods and services, but nominal GDP does.
200
200
Population growth outpaced real GDP growth.
Real GDP grew at the same rate as the population.
O Real GDP growth outpaced population growth.
. This is true because of which of the following?
Assume that real GDP per capita is a good measure of living standards. Which of the following sentences best describes what happened in this
economy between 2022 and 2023?
than the
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