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tancattle526Lv1
28 Sep 2019
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?
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?
Chika IlonahLv10
30 Sep 2019