GDP enables economic policymakers to assess whether the economy is weakening or strengthening and if threats of recession or inflation are imminent, in order to determine what policies are needed. Investors place importance on GDP growth rates to decide how the economy is changing so that they can...
The GDP deflator is a fudge factor that allows us to compare an economy's Gross Domestic Product in two or more different years. It also allows us to accurately assess an economy's real growth rate over time. It does this by providing a compensating factor that backs inflation out of the...
Determine whether the following statement describes the consumer price index (CPI), the GDP deflator, both, or neither: "It equals nominal GDP divided by real GDP, multiplied by 100." Define in economics terms: - Poverty. - Con...
How does the GDP help determine the economic health of a nation? How to calculate the aggregate saving function if you are given the aggregate income and the aggregate savings? For the economy as a whole, how does income compare to expenditures? Explain. ...
economies worse off, but they can determine who bears the brunt of the shock. Support, in the form of rebates on energy bills for the poorest, or even cash bonuses (as recently enacted in Italy), would help the neediest, while still...
Money supply data is usually analyzed and published by the government or the central bank of the country. Since it is present in various forms (virtual and physical) in different currencies, it’s extremely difficult to determine the exact total amount. ...
The gross domestic product (GDP) of a nation is an estimate of the total value of all the goods and services it produces during a specific period, usually a quarter or a year. Its greatest use is as a point of comparison; for example, to determine if the nation's economy grew or con...
Because nominal GDP measures how well the economy is doing without factoring in price changes due to inflation or deflation, it may actually inflate growth because all of the goods and services that are used to determine nominal GDP are valued at prices in the current year. ...
GDP is divided by population to determine personal income, adjusted for inflation with real GDP, and adjusted forpurchasing power parityto control for the impacts of regional price disparities. Real per capita GDP adjusted for purchasing power parity is a heavily refined statistic used to measure tr...
TheGordon Growth Model (GGM)is a popular approach used to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate. Thisdividend growth rateis assumed to be positive as mature companies seek to increase the dividends paid to their investors ...