Accurate measure of economys production than nominal GDP

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Real versus, nominal GDP Consider a simple economy that produces two goods: apples and envelopes. The following table shows the prices and quantities for the goods over a three-year period. Use the information from the previous table to fill in the following table. From 2009 to 2010, nominal GDP and real GDP. The inflation rate in 2010 was. Why is real GDP a more accurate measure of an economy’s production than nominal GDP? Real GDP is not influenced by price changes, but nominal GDP is. Real GDP does not include the value of intermediate goods and services, but nominal GDP does. 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.

Reference no: EM13859027

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