This is for macroeconomics. Real versus nominal GDP.

Posted: December 30th, 2021

5. Real versus nominal GDPConsider 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.PencilsMuffinsPriceQuantityPriceQuantityYear(Dollars per pencil) (Number of pencils) (Dollars per muffin)(Number of muffins)2016211551752017150N1802018100N160Use the information from the preceding table to fill in the following table.Nominal GDPReal GDPYear(Dollars)(Base year 2016, dollars)GDP Deflator201620172018