Homework Help is Here – Start Your Trial Now!
Business
Economics
Consider a simple economy that produces two goods: beers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Price Quantity Year (Dollars per beer) (Number of beers) 2018 3 210 2019 2 150 2020 3 125 Beers Year 2018 2019 2020 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator From 2019 to 2020, nominal GDP The inflation rate in 2020 was 1 Price (Dollars per seltzer) 4 and real GDP Seltzers decreased increased Why is real GDP a more accurate measure or 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. Quantity (Number of seltzers) 180 200 180 Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.

Consider a simple economy that produces two goods: beers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Price Quantity Year (Dollars per beer) (Number of beers) 2018 3 210 2019 2 150 2020 3 125 Beers Year 2018 2019 2020 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator From 2019 to 2020, nominal GDP The inflation rate in 2020 was 1 Price (Dollars per seltzer) 4 and real GDP Seltzers decreased increased Why is real GDP a more accurate measure or 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. Quantity (Number of seltzers) 180 200 180 Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 14CQ
See similar textbooks
icon
Related questions
Question
5. Real versus nominal GDP Consider a simple economy that produces two goods: beers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Year 2018 2019 2020 Year 2018 2019 2020 Price Quantity (Dollars per beer) (Number of beers) 3 210 150 125 2 3 Beers Use the information from the preceding table to fill in the following table. From 2019 to 2020, nominal GDP The inflation rate in 2020 was Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator decreased Price (Dollars per seltzer) 4 1 4 4 and real GDP Seltzers Quantity (Number of seltzers) 180 200 180 increased Why is real GDP a more accurate measure or 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. Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.
Transcribed Image Text:5. Real versus nominal GDP Consider a simple economy that produces two goods: beers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Year 2018 2019 2020 Year 2018 2019 2020 Price Quantity (Dollars per beer) (Number of beers) 3 210 150 125 2 3 Beers Use the information from the preceding table to fill in the following table. From 2019 to 2020, nominal GDP The inflation rate in 2020 was Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator decreased Price (Dollars per seltzer) 4 1 4 4 and real GDP Seltzers Quantity (Number of seltzers) 180 200 180 increased Why is real GDP a more accurate measure or 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. Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.
Chapter 10 Homework 5. Real versus nominal GDP Consider a simple economy that produces two goods: beers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Year 2018 2019 2020 Year 2018 2019 2020 Price (Dollars per beer) 3 2 3 Nominal GDP (Dollars) Beers Use the formation from the preceding table fill in the following table. From 2019 to 2020, nominal Quantity (Number of beers) 210 The inflation rate in 2020 was Real GDP (E-13.6% 2018, dollars) GDP Deflator 0.1% 13.6% 150 125 88% 113.6% Price (Dollars per seltzer) 4 4 4 , and real GDP Seltzers O Real GDP is not influenced by price changes, but nominal GDP is. O Real GDP includes the value of exports, but nominal GDP does not. Quantity (Number of seltzers) 180 Why is real GDP a more accurate measure of an economy's production than nominal GDP? 200 180 O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.
Transcribed Image Text:Chapter 10 Homework 5. Real versus nominal GDP Consider a simple economy that produces two goods: beers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Year 2018 2019 2020 Year 2018 2019 2020 Price (Dollars per beer) 3 2 3 Nominal GDP (Dollars) Beers Use the formation from the preceding table fill in the following table. From 2019 to 2020, nominal Quantity (Number of beers) 210 The inflation rate in 2020 was Real GDP (E-13.6% 2018, dollars) GDP Deflator 0.1% 13.6% 150 125 88% 113.6% Price (Dollars per seltzer) 4 4 4 , and real GDP Seltzers O Real GDP is not influenced by price changes, but nominal GDP is. O Real GDP includes the value of exports, but nominal GDP does not. Quantity (Number of seltzers) 180 Why is real GDP a more accurate measure of an economy's production than nominal GDP? 200 180 O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Value Added Method
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
ECON MACRO
ECON MACRO
Economics
ISBN:
9781337000529
Author:
William A. McEachern
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS