. Real versus nominal GDP

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

Year	Coffees	Seltzers
Price	Quantity	Price	Quantity
(Dollars per coffee)	(Number of coffees)	(Dollars per seltzer)	(Number of seltzers)
2019	2	255	2	195
2020	3	165	3	190
2021	2	130	3	195

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

Year	Nominal GDP	Real GDP	GDP Deflator
(Dollars)	(Base year 2019, dollars)
2019
2020
2021

From 2020 to 2021, nominal GDP a.) decreased or b.) increased , and real GDP a.) increased or b. decreased.

The inflation rate in 2021 was a.)13.3% b.) -13.3 c.) -0.1 d.) 86.7 e.) 115.4 .?

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

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.

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.