Consider a simple economy that produces two goods: pencils and envelopes. The following table shows the prices and quantities of the goods over a three$-$year period.

Year

Pencils

Envelopes

Price

Quantity

Price

Quantity

$($Dollars per pencil$)$

$($Number of pencils$)$

$($Dollars per envelope$)$

$($Number of envelopes$)$

$202011452195$

$202121654225$

$202231104165$

Use the information from the previous table to fill in the following table.

Year

Nominal GDP

Real GDP

GDP Deflator

$($Dollars$)$

$($Base year $2020,$ dollars$)$

$2020$

$2021$

$2022$

From $2021$ to $2022,$ nominal GDP $,$ and real GDP $.$

The inflation rate in $2022$ was $.$

Why is real GDP a more accurate measure of an economy's production than nominal GDP$?$

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

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

Real GDP does not include the value of intermediate goods and services, but nominal GDP does.