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5. Calculating real GDP and real GDP per capita The following table provides the population size, price-level index, and nominal GDP of a hypothetical economy

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5. Calculating real GDP and real GDP per capita The following table provides the population size, price-level index, and nominal GDP of a hypothetical economy over a four-year period. Complete the table by calculating real GDP and real GDP per capita from 2014 to 2017 using the data provided. Nominal GDP Real GDP Real GDP per Capita Year Population Size Price-Level Index (Dollars) (Dollars) (Dollars) 2014 400 80 32,000 2015 420 90 37,800 2016 440 100 55,000 2017 480 110 52,800 In 2014, nominal GDP is than real GDP. This means that the purchasing power of the currency in 2014 is than the purchasing power of the currency in the base year. Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. O Real GDP is not influenced by price changes, but nominal GDP is.2014 400 80 32,000 2015 420 90 37,800 2016 440 100 55,000 2017 480 110 52,800 In 2014, nominal GDP is than real GDP. This means that the purchasing power of the currency in 2014 is than the purchasing power of the currency in the base year. Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. O Real GDP is not influenced by price changes, but nominal GDP is. Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. The growth rate of real GDP per capita between 2015 and 2016 is Assume that real GDP per capita is a good measure of living standards. Which of the following sentences best describes what happened in this economy between 2015 and 2016? Living standards because of which of the following? Real GDP growth outpaced population growth. Population growth outpaced real GDP growth. O Real GDP grew at the same rate as the population.2017 480 110 52,800 In 2014, nominal GDP is than real GDP. This means that the purchasing power of the currency in 2014 is than the purchasing power of the currency in the base year. Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. O Real GDP is not influenced by price changes, but nominal GDP is. O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. The growth rate of real GDP per capita between 2015 and 2016 is Assume that real GDP per capita is a good measure of living standards. Which of the following sentences best describes what happened in this economy between 2015 and 2016? Living standards because of which of the following? O Real GDP growth outpaced population growth. O Population growth outpaced real GDP growth

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