4. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and muffins. The following table shows the prices and quantities of the goods over a three year period. Cupcakes Muffins Price Quantity Price Quantity Yoar ( Dollars per cupcake) (Number of cupcakes) (Dollars per mumin) (Number of muffins) 2016 115 175 2017 150 180 2018 100 160 Use the Information from the previous table to fill in the following table. Nominal GDP Real GDP Year (Dollars) (Base year 2016, dollars) GDP Deflator 2016 2017Use the information from the previous table to fill in the following table. Nominal GDP Real GDP Year (Dollars) ( Base year 2016, dollars) GDP Deflator 2016 2017 2018 From 2017 to 2018, nominal GDP and real GDP The inflation rate in 2018 was Why Is real GDP a more accurate measure of an economy's production than nominal GDP? O Real GDP is not influenced by price changes, but nominal GDP is. 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. Nominal GDP Is adjusted for the effects of inflation or deflation, whereas real GDP is not