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This Is For Macroeconomics Real Versus Nominal Gdp Screen
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5. Real versus nominal GDP
Consider a simple economy that produces two goods: pencils and muffins. The following table shows the prices and quantities of the goods over a three-year period.
Pencils
Muffins
Price
Quantity
Price
Quantity
Year
(Dollars per pencil) (Number of pencils) (Dollars per muffin)
(Number of muffins)
2016
2
115
5
175
2017
150
N
180
2018
100
N
160
Use the information from the preceding table to fill in the following table.
Nominal GDP
Real GDP
Year
(Dollars)
(Base year 2016, dollars)
GDP Deflator
2016
2017
2018Macroeconomics