Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP Year (Dollars) (Base year 20o16, dollars) GDP Deflator 2016 2017 2018 From 2017 to 2018, nominal GDP and real GDP The inflation rate in 2018 was

Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP Year (Dollars) (Base year 20o16, dollars) GDP Deflator 2016 2017 2018 From 2017 to 2018, nominal GDP and real GDP The inflation rate in 2018 was

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 7PA

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Question

Consider a simple economy that produces two goods: apples and erasers. The following table shows the prices and quantities of the goods over a
three-year period.
Apples
Erasers
Price
Quantity
Price
Quantity
Year
(Dollars per apple)
(Number of apples)
(Dollars per eraser)
(Number of erasers)
2016
1
145
195
2017
165
4
225
2018
110
4
165
Use the information from the preceding table to fill in the following table.
Nominal GDP
Real GDP
Year
(Dollars)
(Base year 2016, dollars)
GDP Deflator
2016
2017
2018
From 2017 to 2018, nominal GDP
and real GDP
The inflation rate in 2018 was

Use the information from the preceding table to fill in the following table.
Nominal GDP
Real GDP
Year
(Dollars)
(Base year 2016, dollars)
GDP Deflator
2016
2017
2018
From 2017 to 2018, nominal GDP
and real GDP
The inflation rate in 2018 was
Why 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 and
services an economy consumes.
O Real GDP is not influenced by price changes, but nominal GDP is.
O Real GDP does not include the value of intermediate goods and services, but nominal GDP does.

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