GDP Real GDP Year (Dollars) (Base year 2008, dollars) 2008 2009 2010 From 2009 to 2010, GDP. , and real GDP Why is real GDP a more accurate measure of an economy's production than GDP? Real GDP includes the value of exports, but GDP does not. Real GDP does not include the value of intermediate goods and services, but GDP does. Real GDP is not influenced by price changes, but GDP is.

Consider the following data for a hypothetical economy that produces two goods: milk and honey. Quantity Produced Prices Milk (litres) Honey (kg) Milk ($/litre) Honey ($/kg) Year 1 110 45 2 6 Year 2 125 40 37 Compute nominal GDP for each year in this economy. Using year 1 as the base year, compute real GDP for each year. What is the percentage change in real GDP from year 1 to year 2? Using year 1 as the base year, compute the price deflator for each year. Now compute the GDP deflator for each year, using year 2 as the base year. Explain why the measures of real GDP growth (and growth in the deflator) depend on the choice of base year.

First, define nominal GDP and real GDP. Second, is it possible for nominal GDP in a year to be less than real GDP in the same year? Explain. (100 words max)

The table shows the quantities produced and prices in 2015 and 2016 for an island. economy which produces only bananas and coconuts. The base year is 2016. Calculate real GDP in 2015 and 2016 using the chained-dollar method. In terms of what dollars is each of these two real GDPS measured? Real GDP in 2016 using the chained-dollar method is $ Real GDP in 2015 using the chained-dollar method is $ >>> Answer with a whole number Real GDP in 2015 and real GDP in 2016 are measured in ▼ dollars In 2015 Item Bananas Coconuts In 2016 Item Bananas Coconuts Quantity 99 bunches 53 bags Quantity 114 bunches. 66 bags. Price $10 a bunch $9 a bag Price $11 a bunch $10 a bag

Question 3 Consumer spending in GDP measurement does NOT include spending by businesses on labor resources households on necessary expenses such as gasoline individual households on durable items such automobiles and computers. families on services such as healthcare students on tuition.

Real versus nominal GDP Consider a simple economy that produces two goods: stickers and paper plates. The following table shows the prices and quantities of the goods over a three-year period.   Year Stickers Paper plates Price Quantity Price Quantity (Dollars per sticker) (Number of stickers) (Dollars per paper plate) (Number of paper plates) 2020 3 260 2 160 2021 4 120 2 220 2022 3 155 2 140   Use the information from the preceding table to fill in the following table.   Year Nominal GDP Real GDP GDP Deflator (Dollars) (Base year 2020, dollars) 2020       2021       2022       From 2021 to 2022, nominal GDP DECREASED OR INCREASED , and real GDP  INCREASED OR DECREASED. The inflation rate in 2022 was  -13% or -.01% or 13% or 87% or 115%. Why is real GDP a more accurate measure of an economy's production than nominal GDP?   a. Real GDP is not influenced by price changes, but nominal GDP is.…

67. GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.