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Consider a simple economy that produces two goods: coffees and enamel pins. The following table shows the prices and quantities of the goods over a three-year period. Year 2019 Price Quantity Price Quantity Year (Dollars per coffee) (Number of coffees) (Dollars per enamel pin) (Number of enamel pins) 2019 215 155 2020 135. 210 2021 150 190 2 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) 2020 2021 Coffees Real GDP (Base year 2019, dollars) GDP Deflator From 2020 to 2021, nominal GDP The inflation rate in 2021 was V V and real GDP Enamel pins 3 3 k Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. 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.

Consider a simple economy that produces two goods: coffees and enamel pins. The following table shows the prices and quantities of the goods over a three-year period. Year 2019 Price Quantity Price Quantity Year (Dollars per coffee) (Number of coffees) (Dollars per enamel pin) (Number of enamel pins) 2019 215 155 2020 135. 210 2021 150 190 2 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) 2020 2021 Coffees Real GDP (Base year 2019, dollars) GDP Deflator From 2020 to 2021, nominal GDP The inflation rate in 2021 was V V and real GDP Enamel pins 3 3 k Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. 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.

Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Measuring A Nation's Income
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Consider a simple economy that produces two goods: coffees and enamel pins. The following table shows the prices and quantities of the goods over a three-year period. Price Year (Dollars per coffee) 2019 2 2020 2021 Year 2019 4 2020 2021 2 Coffees Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Quantity (Number of coffees) 215 135 150 From 2020 to 2021, nominal GDP The inflation rate in 2021 was Real GDP (Base year 2019, dollars) GDP Deflator Price (Dollars per enamel pin) 3 3 3 Enamel pins and real GDP Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of enamel pins) 155 210 4 190 O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. O Real GDP is not influenced by price changes, but nominal GDP is. 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.
Transcribed Image Text:Consider a simple economy that produces two goods: coffees and enamel pins. The following table shows the prices and quantities of the goods over a three-year period. Price Year (Dollars per coffee) 2019 2 2020 2021 Year 2019 4 2020 2021 2 Coffees Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Quantity (Number of coffees) 215 135 150 From 2020 to 2021, nominal GDP The inflation rate in 2021 was Real GDP (Base year 2019, dollars) GDP Deflator Price (Dollars per enamel pin) 3 3 3 Enamel pins and real GDP Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of enamel pins) 155 210 4 190 O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. O Real GDP is not influenced by price changes, but nominal GDP is. 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.
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