9. 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 2016 to 2019 using the data provided.

Year	Population Size	Price-Level Index	Nominal GDP	Real GDP	Real GDP per Capita
(Dollars)	(Dollars)	(Dollars)
2016	100	80	$12,000
2017	110	100	$16,500
2018	120	125	$30,000
2019	150	120	$36,000

In 2019, nominal GDP is than real GDP. This means that the purchasing power of the currency in 2019 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?

Real GDP is not influenced by price changes, but nominal GDP is.

Real GDP includes the value of exports, but nominal GDP does not.

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.

The growth rate of real GDP per capita between 2017 and 2018 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 2017 and 2018?

Living standards because of which of the following?

Population growth outpaced real GDP growth.

Real GDP growth outpaced population growth.

Real GDP grew at the same rate as the population.

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