Consider a simple economy that produces two goods: beers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Beers Seltzers Price (Dollars per Year beer) Quantity (Number of beers) Price (Dollars per seltzer) Quantity (Number of seltzers) 2018 2 255 2 195 2019 3 165 2020 2 130 3 3 190 195 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Real GDP (Base year 2018, dollars) GDP Deflator Year 2018 2019 2020 From 2019 to 2020, nominal GDP and real GDP The inflation rate in 2020 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? ○ Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. ○ Real GDP includes the value of exports, but nominal GDP does not. O Real GDP is not influenced by price changes, but nominal GDP is.

As technological change makes us more sedentary and food costs increase, obesity is likely. What factors do you think may limit obesity?

Which of the following are included in GDP, and which are not? The cost of hospital stays The rise in life expectancy over time Child care provided by a licensed day care center Child care provided by a grandmother A used car sale A new car sale The greater variety of cheese available in supermarkets The iron that goes into the steel that goes into a refrigerator bought by a consumer.

Agricultural price supports result in governments holding large inventories of agricultural products. Why do you think the government cannot simply give the products away to poor people?

What are the main components of measuring GDP with what is demanded?

What are the main components of measuring GDP with what is produced?

Are firms primarily buyers or sellers in the goods and services market? In the labor market?

Go to this website (http://www.measuringworth.com/ppowerus/) for the Purchasing Power Calculator at measuringWorth.com. How much money would it take today to purchase what one dollar would have bought in the year of your birth?

What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?

What is the primary way which economists measure standards of living?