Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. The inflation rate in 2022 wasWhy is real GDP a more accurate measure of an economy's production than nominal GDP?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.Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.O Real GDP is not influenced by price changes, but nominal GDP is. 2. Real versus nominal GDPConsider a simple economy that produces two goods: coffees and enamel pins. The following table shows the prices and quantities of the goods over athree-year period.Year202020212022Year202020212022Price(Dollars per coffee)323CoffeesNominal GDP(Dollars)Use the information from the preceding table to fill in the following table.Quantity(Number of coffees)265120150From 2021 to 2022, nominal GDPReal GDP(Base year 2020, dollars) GDP DeflatorPriceQuantity(Dollars per enamel pin) (Number of enamel pins)160and real GDPEnamel pins4210155

As per the guidelines we are allowed to answer the first question only. Please post the remaining…

The inflation rate in 2022 was 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. Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. O Real GDP is not influenced by price changes, but nominal GDP is.

The inflation rate in 2022 was 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. Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. O Real GDP is not influenced by price changes, but nominal GDP is.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 7QR

See similar textbooks

Similar questions

Which of the following are included in GDP, and which are not? The cost of hospital stays The rise in life expectancy over time Child care provided by a licensed day care center Child care provided by a grandmother A used car sale A new car sale The greater variety of cheese available in supermarkets The iron that goes into the steel that goes into a refrigerator bought by a consumer.
Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?
Why is the GDP deflator not an accurate measure of inflation as it impacts a household?
What are the main components of measuring GDP with what is demanded?
What are the two main difficulties that arise in comparing different comparing GDP?
How might you measure a green GDP?
The United States exports 14 of GDP while Germany exports about 50 of its GDP. Explain stat that means.
What does GDP not tell us about the economy?