5 Real Versus Nominal Gdp Consider A Simple Economy That Produces Two Goods Pencils And Erasers The Following Table S 1 (18.81 KiB) Viewed 33 times
5 Real Versus Nominal Gdp Consider A Simple Economy That Produces Two Goods Pencils And Erasers The Following Table S 2 (29.25 KiB) Viewed 33 times
5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and erasers. The following table shows the prices and quantities of the goods over a three-year period. Price Quantity Year (Dollars per pencil) (Number of pencils) 2018 1 110 2019 2 155 2020 3 120 Pencils Year 2018 Use the information from the preceding table to fill in the following table Nominal GDP (Dollars) Price (Dollars per eraser) 2 Real GDP (Base year 2018, dollars) GDP Deflator Erasers 4 Quantity (Number of erasers) 150 215 180
Use the information from the preceding table to fill in the following table. Year 2018 2019 2020 Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator From 2019 to 2020, nominal GDP The inflation rate in 2020 was , and real GDP Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP includes the value of exports, but nominal GDP does not. O Real GDP is not influenced by price changes, but nominal GDP is. O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. Grade It Now
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