7 Real Versus Nominal Values And Correcting For Inflation Consider The Following Hypothetical Economy With The Followin 1 (55.83 KiB) Viewed 10 times
7. Real versus nominal values and correcting for inflation Consider the following hypothetical economy with the following economic data. Year 2010 2011 2012 Nominal GDP GDP Deflator (Dollars) (Dollars) $1,105 100 $960 80 $420 42 Use the information from the previous table to fill in the following table. Hint: You will need to convert all the nominal values above into real 2010 dollars using the GDP deflator. Round your results to the nearest whole dollar when entering your answers. Real GDP (Dollars) Year (Base year 2010) 2010 2011 2012 From 2011 to 2012, nominal GDP and real GDP
From 2011 to 2012, nominal GDP The inflation rate in 2012 was , and real GDP Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Real GDP is not influenced by price changes, but nominal GDP is. 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 includes the value of exports, but nominal GDP does not.
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