2019QuantityQuantityYear (Dollars per plastic cup) (Number of plastic cups) (Dollars per paper plate) (Number of paper plates)IMA22016012020202021PriceYear201920202021224Use the information from the preceding table to fill in the following table.Plastic cupsNominal GDPReal GDP(Dollars) (Base year 2019, dollars) GDP DeflatorFrom 2020 to 2021, nominal GDPThe inflation rate in 2021 wasand real GDPPrice444Paper platesWhy is real GDP a more accurate measure of an economy's production than nominal GDP?190200180Real GDP is not influenced by price changes, but nominal GDP is.O Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods andservices an economy consumes.O Real GDP does not include the value of intermediate goods and services, but nominal GDP does.

GDP or gross domestic product measures the money value of all final goods and services produced in…

Price Quantity Year (Dollars per plastic cup) (Number of plastic cups) 220 2019 2020 160 120 2021 2 2 4 Year 2019 2020 2021 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2019, dollars) GDP Deflator Plastic cups From 2020 to 2021, nominal GDP The inflation rate in 2021 was , and real GDP Price Quantity (Dollars per paper plate) (Number of paper plates) 190 200 180 4 4 4 Paper plates Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Real GDP is not influenced by price changes, but nominal GDP is. O 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 does not include the value of intermediate goods and services, but nominal GDP does.

Price Quantity Year (Dollars per plastic cup) (Number of plastic cups) 220 2019 2020 160 120 2021 2 2 4 Year 2019 2020 2021 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2019, dollars) GDP Deflator Plastic cups From 2020 to 2021, nominal GDP The inflation rate in 2021 was , and real GDP Price Quantity (Dollars per paper plate) (Number of paper plates) 190 200 180 4 4 4 Paper plates Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Real GDP is not influenced by price changes, but nominal GDP is. O 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 does not include the value of intermediate goods and services, but nominal GDP does.

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

2019
Quantity
Quantity
Year (Dollars per plastic cup) (Number of plastic cups) (Dollars per paper plate) (Number of paper plates)
IMA
220
160
120
2020
2021
Price
Year
2019
2020
2021
2
2
4
Use the information from the preceding table to fill in the following table.
Plastic cups
Nominal GDP
Real GDP
(Dollars) (Base year 2019, dollars) GDP Deflator
From 2020 to 2021, nominal GDP
The inflation rate in 2021 was
and real GDP
Price
4
4
4
Paper plates
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
190
200
180
Real GDP is not influenced by price changes, but nominal GDP is.
O 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 does not include the value of intermediate goods and services, but nominal GDP does.

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6
Consider a simple economy that produces two goods: beers and paper plates. The following table shows the prices and quantities of the goods over a three-year period. Year 2019 2020 2021 Year 2019 2020 2021 Price (Dollars per beer) 2 4 2 Beers Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Quantity (Number of beers) 215 135 150 From 2020 to 2021, nominal GDP The inflation rate in 2021 was Real GDP (Base year 2019, dollars) GDP Deflator Price (Dollars per paper plate) I 000 and real GDP 3 3 w w 3 Paper plates 7 155 210 Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP is not influenced by price changes, but nominal GDP is. Real GDP includes the value of exports, but nominal GDP does not. Quantity (Number of paper plates) O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. 190
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