STEP: 2 of 2 The following table shows some data for an economy that produces only two goods: milk and honey. Milk Honey Price Quantity Price Quantity Year (Dollars) (Quarts) (Dollars) (Quarts) 2020 150 2 100 2021 N 150 A 100 2022 2 300 4 200 The following table shows nominal GDP, real GDP, and the GDP deflator for each year listed. Nominal GDP Real GDP Year ( Dollars) (Dollars) GDP Deflator 2020 350 350 100 2021 700 350 200 2022 1,400 700 200Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2021 and 2022 from the preceding year. Percentage Change In... Year Nominal GDP Real GDP GDP Deflator 2021 % 2022 % % % From 2020 to 2021, did not change; and from 2021 to 2022, did not change. Comparing the changes in 2021 and 2022, economic well-being increased more in Grade Final Step TOTAL SCORE: 1/4 (to complete this step and unlock the next step) Grade It Now Save & Continue Continue without saving6 . Calculating inflation using a simple price index Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) ( Dollars) (Dollars) (Dollars) Notebooks 10 2 20 1 3 Calculators 1 50 50 54 75 Large coffees 200 1 200 1 1 Energy drinks 100 2 200 3 4 Textbooks 10 100 1,000 120 150 Total cost 1,470 Price index 100 Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years.Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by % Between 2018 and 2019, the CSPI increased by % Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on their computers. O A new mobile device for personal computing became available for purchase. Energy drinks became increasingly popular on college campuses between 2017 and 2019 due to significant improvements in flavor, but this quality change is hard to measure. O Professors required each student to buy 10 textbooks, regardless of the price. Grade It Now Save & Continue Continue without savingBack to Assignment Attempts 3 Keep the Highest 3 / 4 2 . Real versus nominal GDP Consider a simple economy that produces two goods: pencils and erasers. The following table shows the prices and quantities of the goods over a three-year period. Pencils Erasers Price Quantity Price Quantity Year (Dollars per pencil) (Number of pencils) (Dollars per eraser) (Number of erasers) 2015 115 165 2016 N 135 225 2017 100 175Use 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 , 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 Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. O Real GDP includes the value of exports, but nominal GDP does not. Grade It Now Save & Continue Continue without saving