Define Real GDP. If the real GDP is $52000 and the nominal GDP is $65000, calculate the price index taking base = 100. How do aggregate expenditure and autonomous spending relate to GDP? What are the components of GDP according to the Expenditure approach?
The GDP growth rate, according to the formula above, takes the difference between the current and prior GDP level and divides that by the prior GDP level. Thereal economic (real GDP) growth ratewill take into account the effects of inflation, replacingreal GDPin the numerator and denominator,...
What is the difference between real GDP and nominal GDP? How might you measure a green GDP? What is the concept of GDP? What is the best economic indicator, besides the GDP, to measure the economy of a nation? What is the difference between GDP and GDP PPP and how is it calculated?
This code operates in a structured manner. Here's how it works: the first two digits represent the product category, the next two pinpoint the group within that category, and the last two specify the product even further. For example, if you’re shipping precious stones fr...
All real GDP components on the demand side (deflated by the GDP deflator) are assumed to grow at the average growth rate of output over the sample period. Prices in steady state grow at a rate of 2% per year. We set the steady-state share of Ricardian households according to the survey...
A new account (“Interest Expense”) was added to the “General Ledger”. The company is paying (every 6 months):Face Value x (Nominal Interest Rate/2) = 100,000 x (6%/2) = $3000. But there is a discount for the bond: its true return will be 8% every year (the market rate)...
information on the company's balance sheet to calculate net debt using Microsoft Excel: total short-term liabilities, total long-term liabilities, and total current assets. Enter these three items into cells A1 through A3 respectively. Enter the formula "=A1+A2−A3" in cell A4 to compute ...
You compute the value of the penalty by multiplying the replacement cost ($500,000) with the multiplier, 0.25 (1 – 0.75). So by violating the coinsurance clause, you are not only unable to receive the full replacement cost, but you also have to pay a hefty penalty. ...
How does an appreciating currency affect real GDP, as well as its individual components (such as consumption, etc.)?Appreciating Currency:The currency value is raised in the country while comparing with the other is termed an appreciating currency. It helps...
GDPGlobal Gross Domestic Product is a monetary measurement of the overall value of all finished goods and services generated in a country over a period of time, usually a year. In economics, the GDP is the most often used metric.Answer and Explanation: In the near ru...