Year Cupcakes Envelopes
Price Quantity Price Quantity
(Dollars per cupcake) (Number of cupcakes) (Dollars per envelope) (Number of envelopes)
2012 2 115 5 175
2013 4 150 2 180
2014 1 100 2 160

Use the information from the preceding table to fill in the following table.

Year Nominal GDP Real GDP GDP Deflator
(Dollars) (Base year 2012, dollars)
2012
2013
2014

From 2013 to 2014, nominal GDPdecreased , and real GDPdecreased .

The inflation rate in 2014 was .

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.
b. Real GDP does not include the value of intermediate goods and services, but nominal GDP does.
c. Real GDP includes the value of exports, but nominal GDP does not.

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum.should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?