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  The year 2007 The year 2008 The year 2009
Nominal GDP 175 billion   220.5 billion
Real GDP 194 billion   210 billion
GDP Deflator (2008 base) 90   105

Fill in the missing values for 2008.

 

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Romarie Khazandra Marijuan
Romarie Khazandra MarijuanLv10
28 Sep 2019

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Related questions

Suppose for the year 2013 the economy of Uplandia has a nominal GDP of $5,500 billion and a real GDP of $3,300 billion.

1. For 2013, this economy's GDP deflator is _______.

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1.The base year is 2008. A country only produces MP3 players. The price of an MP3 player in 2008 was $100. The price of an MP3 player was $90 in 2009. The quantity of MP3 players produced in 2008 was 10,000 units and in 2009 was 10,500 units.
 
1.1 Nominal GDP in 2008 equals
A)$900,000.
B)$945,000.
C)$1,000,000.
D)$1,050,000.
E)an amount that cannot be determined without information about nominal GDP in 2007.
 
1.2 Nominal GDP in 2009 equals
A)$900,000.
B)$945,000.
C)$1,000,000.
D)$1,050,000.
E)an amount that cannot be determined without information about nominal GDP in 2008.
 
1.3  Real GDP in 2008 equals
A)$900,000.
B)$945,000.
C)$1,000,000.
D)$1,050,000.
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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.

Year

Apples

Muffins
Price Quantity Price Quantity
(Dollars per apple) (Number of apples) (Dollars per muffin) (Number of muffins)
2008 1 150 2 160
2009 2 135 4 230
2010 3 110 4 165

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

Year Nominal GDP Real GDP
(Dollars) (The base year 2008, dollars)
2008    
2009    
2010    

1. From 2009 to 2010, nominal GDP (decreased or increased), and real GDP (decreased or increased).

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

A. 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.

B. Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.

C. Real GDP is not influenced by price changes, but nominal GDP is.

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