From 2016 to 2017, nominal GDP ______ , and real GDP______

The inflation rate in 2017 was_______

Back to Assignment Attempts 2.3 Average 2.3 / 4 3 . Real versus nominal GDP Consider a simple economy that produces two goods: apples and muffins. The following table shows the prices and quantities of the goods over a three-year period. Apples Muffins Price Quantity Price Quantity Year ( Dollars per apple) (Number of apples) ( Dollars per muffin) (Number of muffins) 2015 125 2 155 2016 135 210 U N A A 2017 100 200 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP Year "Dollars) (Base year 2015, dollars) GDP Deflator 2015 2016 2017 From 2016 to 2017, nominal GDP 7 , and real GDP The inflation rate in 2017 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. O 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