Use the information from the previous table to fill in the following table. Hint: You will need to convert all the nominal values above into real 2008 dollars using the GDP deflator. Round your results to the nearest whole dollar when entering your answers. Real GDP (Dollars) Year (Base year 2008) 2008 2009 2010 From 2009 to 2010, nominal GDP The inflation rate in 2010 was and real GDP Why is real GDP a more accurate measure of an economy's production than nominal GOP? Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is 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.

Use the information from the previous table to fill in the following table. Hint: You will need to convert all the nominal values above into real 2008 dollars using the GDP deflator. Round your results to the nearest whole dollar when entering your answers. Real GDP (Dollars) Year (Base year 2008) 2008 2009 2010 From 2009 to 2010, nominal GDP The inflation rate in 2010 was and real GDP Why is real GDP a more accurate measure of an economy's production than nominal GOP? Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is 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.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 4.9P

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The Consumer Price Index is subject to the substitution bias and me quality/new goods bias. Are the Producer Price index and the GDP deflator also subject to these biases? Why or why not?
What are the main components of measuring GDP with what is produced?
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Papayas Price (2015, base Quantity (2015, year) base year) $12 Watermelon $24 3.74% 1.95% 2.27% 1.24% 1600 400 Price (2019) $26 $18 Quantity (2019) 1300 1200 Consider the table above. Assume that there are only two goods produced in this economy: Papayas and watermelon. If the GDP deflator for 2018 was 122 then the rate of inflation between 2018 and 2019 was:
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Table 1 Quantity Price Quantity Price Item 1990 1990 1991 1991 Coffee 10 ---- 8 $50 Sugar 20 $1 15 $2 Refer to table 1 to answer the below question. In 1990, consumers in Dexter consumed only Coffee and Sugar. The prices and quantities for 1990 and 1991 are listed in table 1. The reference base period for Dexter's is 1990 and the Nominal GDP1990 was 320. Calculate the consumer price index (CPI) in 1991 * 59.37 134.37 168.75 118.75
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