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Real versus nominal GDP Consider a simple economy that produces two goods: apples and oranges. The following table shows the prices and quantities of the

Real versus nominal GDP

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

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Use the information from the previous table to fill in the following table. Nominal GDP Real GDP Year (Dollars) ( Base year 2016, dollars) GDP Deflator 2016 2017 2018 From 2017 to 2018, nominal GDP , and real GDP The inflation rate in 2018 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Real GDP includes the value of exports, but nominal GDP does not. O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. O Real GDP is not influenced by price changes, but nominal GDP is.Apples Oranges Price Quantity Price Quantity Year (Dollars per apple) (Number of apples) (Dollars per orange) (Number of oranges) 2016 110 2 150 2017 155 4 215 2018 W 120 4 180

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