Pear Phone |Year Price (S) Quantity Price (S) Quantity 2015 3 210 450 54 2016 4 200 500 50 4. Compute nominal GDP in each year. 5. By what percentage did the nominal GDP change between 2015 and 2016? 6. Compute real GDP each year by using "2015" as the base year. _7. By what percentage did real GDP change between 2015 and 2016? 8. By using the table and your answers to #15, and #17, explain (in one or two paragraphs) why "real GDP" is better than "nominal GDP" in measuring the production activity of an economy.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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15 & 16 please 

Using the table below,
Pear
Phone
Year
Price (S)
Quantity
Price (S)
Quantity
2015
3
210
450
54
2016
4
200
500
50
14. Compute nominal GDP in each year.
15. By what percentage did the nominal GDP change between 2015 and 2016?
16. Compute real GDP each year by using "2015" as the base year.
17. By what percentage did real GDP change between 2015 and 2016?
18. By using the table and your answers to #15, and #17, explain (in one or two paragraphs) why "real
GDP" is better than "nominal GDP" in measuring the production activity of an eçonomy.
LA
Transcribed Image Text:Using the table below, Pear Phone Year Price (S) Quantity Price (S) Quantity 2015 3 210 450 54 2016 4 200 500 50 14. Compute nominal GDP in each year. 15. By what percentage did the nominal GDP change between 2015 and 2016? 16. Compute real GDP each year by using "2015" as the base year. 17. By what percentage did real GDP change between 2015 and 2016? 18. By using the table and your answers to #15, and #17, explain (in one or two paragraphs) why "real GDP" is better than "nominal GDP" in measuring the production activity of an eçonomy. LA
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