16. Nominal GDP differs from real GDP because nominal GDP is based on constant pricesreal GDP is based on current pricesreal GDP is adjusted for changes in the price levelnominal GDP is adjusted for changes in the price level

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ei Quantity of good A Price of good A Quantity of good B Price of good B a. In 2010, nominal GDP $ Year 2009 3 $500 10 $2 b. With 2009 as the base year, real GDP in 2010-$ Year 2010 4 $550 10 $4 Year 2011 5 $550 10 $5

Consider a simple economy that produces two goods: cheese and wine. The following table shows the prices and quantities of the goods over a three-year period. Please explain the formulas you used to get your answer. Grapes Аpple S Year Price Quantity Quantity Price 2017 $21 110 $30 500 2019 $24 145 $30.5 500 2019 $24 150 $31 520 For each year, calculate nominal GDP, real GDP, and the GDP deflator. Use 2017 as the base year. Fill in the cells in the table below and submit it in your answer. In your answer. Year Nominal GDP RGDP GDP deflator 2018 2019 2020