Consider a simple economy that produces two goods: pens and envelopes. The following table shows the prices and quantiti

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Consider A Simple Economy That Produces Two Goods Pens And Envelopes The Following Table Shows The Prices And Quantiti 1 (17.39 KiB) Viewed 74 times

Consider a simple economy that produces two goods: pens and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Year Pens Envelopes Price Quantity Price Quantity (Dollars per pen) (Number of pens) (Dollars per envelope) (Number of envelopes) 2 125 3 155 135 3 210 2016 2017 4 2018 2 125 3 165 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 Why is real GDP a more accurate measure of an economy's production than nominal GDP? Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. Real GDP is not influenced by price changes, but nominal GDP is. Real GDP includes the value of exports, but nominal GDP does not.