ECO100Y1 Lecture : Q1 Substitutes (Easy)
30 views1 pages
Get access
Grade+
$40 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers
Related textbook solutions
Related Documents
Related Questions
Consider a simple economy that only produces two goods; apples and oranges. The following table shows prices and quantities over a 3 year period.
Price of |
Quantity of |
Price of |
Quantity of |
|
YEAR |
Apples |
Apples |
Oranges |
Oranges |
2012 |
2 |
20 |
1 |
10 |
2013 |
3 |
24 |
2 |
12 |
2014 |
4 |
30 |
3 |
20 |
Use the information from the previous table to fill out the following table:
Real GDP |
GDP |
||
YEAR |
Nominal GDP ($) |
(The base year 2012)($) |
Deflator |
2012 |
|||
2013 |
|||
2014 |
Choose one from each:
From 2013 to 2014, nominal GDP (increased or decreased) and real GDP (increased or decreased).
The inflation rate in 2014 was (10%, 40.6%, 29.4%, -28.9%, or -9.1%).
Why is real GDP a more accurate measure of an economyâs production than nominal GDP?