Use the information from the preceding table to fill in the following table. Yea
ID: 1156977 • Letter: U
Question
Use the information from the preceding table to fill in the following table.
Year
Nominal GDP
Real GDP
GDP Deflator
(Dollars)
(Base year 2014, dollars)
From 2015 to 2016, nominal GDP , and real GDP .
The inflation rate in 2016 was .
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Real GDP is not influenced by price changes, but nominal GDP is.
Real GDP includes the value of exports, but nominal GDP does not.
Real GDP does not include the value of intermediate goods and services, but nominal GDP does.
Apples
Erasers
Price
Quantity
Price
Quantity
(Dollars per apple)
(Number of apples)
(Dollars per eraser)
(Number of erasers)
190
Use the information from the preceding table to fill in the following table.
Year
Nominal GDP
Real GDP
GDP Deflator
(Dollars)
(Base year 2014, dollars)
2014 2015 2016From 2015 to 2016, nominal GDP , and real GDP .
The inflation rate in 2016 was .
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Real GDP is not influenced by price changes, but nominal GDP is.
Real GDP includes the value of exports, but nominal GDP does not.
Real GDP does not include the value of intermediate goods and services, but nominal GDP does.
Apples
Erasers
Price
Quantity
Price
Quantity
(Dollars per apple)
(Number of apples)
(Dollars per eraser)
(Number of erasers)
2014 1 130 2 165 2015 2 140 4 205 2016 4 120 4190
Explanation / Answer
2014 Base Year
2015
2016
Quantity
Price
Value
Quantity
Price
Value
Quantity
Price
Value
Apples
130
1
130
140
2
280
120
4
480
Erasers
165
2
330
205
4
820
190
4
760
460
1100
1240
2015
2016
Quantity
Price
Value
Quantity
Price
Value
140
1
140
120
1
120
205
2
410
190
2
380
550
500
Year
Nominal GDP
Real GDP
GDP Deflator
(Dollars)
(Base year 2014, dollars)
2014
460
460
100
2015
1100
550
200
2016
1240
500
248
From 2015 to 2016, nominal GDP and real GDP both decreased.
The inflation rate in 2016 was 248 – 200 ÷ 200*100 = 24%
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Real GDP is not influenced by price changes, but nominal GDP is.
2014 Base Year
2015
2016
Quantity
Price
Value
Quantity
Price
Value
Quantity
Price
Value
Apples
130
1
130
140
2
280
120
4
480
Erasers
165
2
330
205
4
820
190
4
760
460
1100
1240
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