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 2011 to 2014 using the data provided. Nominal GDP Real GDP Real GDP per Capita Year Population Size Price-Level Index (Dollars) (Dollars) (Dollars) 2011 400 80 $32,000 2012 420 90 $37,800 2013 440 100 $55,000 2014 480 110 $52,800 In 2014, nominal GDP is than real GDP. This means that the purchasing power of the currency in 2014 is than the 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 2011 and 2012 is 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 2011 and 2012? Living standards because of which of the following? Real GDP grew at the same rate as the population. Real GDP growth outpaced population growth. Population growth outpaced real GDP growth.
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 2011 to 2014 using the data provided. Nominal GDP Real GDP Real GDP per Capita Year Population Size Price-Level Index (Dollars) (Dollars) (Dollars) 2011 400 80 $32,000 2012 420 90 $37,800 2013 440 100 $55,000 2014 480 110 $52,800 In 2014, nominal GDP is than real GDP. This means that the purchasing power of the currency in 2014 is than the 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 2011 and 2012 is 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 2011 and 2012? Living standards because of which of the following? Real GDP grew at the same rate as the population. Real GDP growth outpaced population growth. Population growth outpaced real GDP growth.
Chapter1: Making Economics Decisions
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Transcribed Image Text: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 2011 to 2014 using the data provided.
Nominal GDP
Real GDP
Real GDP per Capita
Year Population Size Price-Level Index
(Dollars)
(Dollars)
(Dollars)
2011
400
80
$32,000
2012
420
90
$37,800
2013
440
100
$55,000
2014
480
110
$52,800
In 2014, nominal GDP is
than real GDP. This means that the purchasing power of the currency in 2014 is
than the
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 2011 and 2012 is
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 2011 and 2012?
Living standards
because of which of the following?
Real GDP grew at the same rate as the population.
Real GDP growth outpaced population growth.
Population growth outpaced real GDP growth.
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