From 2015 to 2016, nominal GDP (decrease ,increase ) , and real GDP (decrease ,i
ID: 1149137 • Letter: F
Question
From 2015 to 2016, nominal GDP (decrease ,increase ) , and real GDP (decrease ,increase ) .
The inflation rate in 2016 was ( % )
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
A ) 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.
B ) Real GDP is not influenced by price changes, but nominal GDP is.
C ) Real GDP does not include the value of intermediate goods and services, but nominal GDP does.
MindTap- Cengage Learning- Google Chrome Not secure | ng.cengage.com/static/nb/ui/index.html?nbld=719368&nbNodeld-270948504;&deploymentId;=4731282 193391 5703062648569&eISBN;:978 1285853482#!&parentId;=270948570 MINDTAP Mazen Alzahrani (? Aplia Homework: Measuring a Nation's Income Due Today at 11:59 PM EST Consider a simple economy that produces two goods: pens and oranges. The following table shows the prices and quantities of the goods over a three-year period. Pens Oranges Quantity (Number of pens) 145 165 110 Quantity (Number of oranges) 195 225 165 Price Price (Dollars per pen) (Dollars per orange) Year 2014 2015 2016 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2014, dollars) GDP Deflator Year 2014 2015 2016 A-Z 9:35 PM Type here to search )ENG 1/28/202Explanation / Answer
Why is real GDP more accurate measure
Answer is B) Nominal GDP is current prices whereas real GDP is base year price and current year quantity.
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Nominal GDP Real GDP 2014 2015 2016 Expenditure in 2014 $ Expenditure in 2015 $ Expenditure in 2016 $ Expenditure in 2014 $ Expenditure in 2015 $ Expenditure in 2016 $ Nominal Growth rate 2015 to 2016 Price ($ ) Quantity Price ($ ) Quantity Price ($ ) Quantity Pen 1 145 2 165 3 110 145 330 330 145 165 110 Oranges 2 195 4 225 4 165 390 900 660 390 450 330 535 1230 990 535 615 440 Real GDP for 2014 (base year) is the same as 2014 Real GDP for 2015 is quantity of 2015 and prices of 2014 which is the base year. Real GDP for 2016 is quantity of 2016 and prices of 2014 which is the base year. Year Nominal GDP ($) Real GDP (Base year 2014 ($)) GDP Deflator 2014 535 535 100.00 2015 1230 615 200.00 2016 990 440 225.00 Nominal GDP increased from 2014 to 2015 and decreased from 2015 to 2016. Read GDP increased from 2014 to 2015 and decreased from 2015 to 2016. GDP deflator = (Nominal GDP/Real GDP)100Why is real GDP more accurate measure
Answer is B) Nominal GDP is current prices whereas real GDP is base year price and current year quantity.
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.