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Consider a simple economy that produces two goods: coffees and paper plates. The following table shows the prices and quantities of the goods over a
Consider a simple economy that produces two goods: coffees and paper plates. The following table shows the prices and quantities of the goods over a three-year period. Coffees Paper plates Price Quantity Price Quantity Year (Dollars per coffee) (Number of coffees) (Dollars per paper plate) (Number of paper plates) 2019 2 220 4 120 2020 2 160 4 200 2021 4 120 4 180 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP Year (Dollars) (Base year 2019, dollars) GDP Deflator From 2020 to 2021, nominal GDP w , and real GDP - The inflation rate in 2021 was - . 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. (O Real GDP includes the value of exports, but nominal GDP does not. (0 Real GDP does not include the value of intermediate goods and services, but nominal GDP does
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