Spending on capital goods, inventories, and structures, including the building of new homes, is considered investment for the purposes of computing GDP.
A country's gross domestic product (GDP) is the sum of the market capital goods values of all the finished products and services produced within its borders during a certain time period. It serves as a thorough assessment of a particular country's economic health as a wide indicator of entire domestic production.
While GDP is frequently estimated on an annual basis, it is also occasionally calculated on a quarterly basis. In the capital goods United States, for instance, the government produces an annualized GDP estimate for both the calendar year and each fiscal quarter. Since each set of data in this report is presented in actual terms, price changes are taken into account and the data is therefore net of inflation.
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The complete question is
For the purpose of calculating GDP, investment is spending on
a. stocks, bonds, and other financial assets.
b. real estate and financial assets.
c new capital equipment, inventories, and structures, including new house construction.
d. All of the above.
The annual percentage of profit on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of a particular sum of money over time.
The investor can calculate how much of a nominal return is real return by adjusting the nominal return to account for inflation.
Real rate of return is one plus nominal rate of return.
(1 plus the inflation rate) (1 plus 0.45 = (1 plus 0.30)
(1 + rate of inflation)
The inflation rate is equal to [(1 + 0.45 / (1 + 0.30)]. 1 Inflation rate equals 0.1154 percent, or 11.54%
Real rate of return has the drawback that its value is unknown until after the event has taken place. That is to say, inflation is a trailing indicator for any particular period, meaning it can only be measured after the relevant period has ended.
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The price of the water needs to be raised by 40% when the consumption of water reduces by 10% and the price elasticity of demand results to 25%.
<h3>What is meant by the price of elasticity of demand?</h3>
The price elasticity of demand is determined as the proportionate variation in quantity with respect to variation in the price of a good.
Given values:
Change in water consumption (fall): 10%
Price elasticity of demand: 25%
Computation of percentage change in the price of water:
Therefore, there is an increase in water price by 40%.
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Damage to the parked car is $5,400. Damage to the store is $12,650. Total damage is calculated as follows :
Total damage = damage to the car + damage to the store Substitute the values in the formula :
Total damage = $5,400 + $12,650 = $18,050. Total damage is $18,050.
The insurance company will cover a maximum of $15,000. The remaining amount of the damage has to be paid by Kurt. The remaining amount is calculated as :
Amount paid by Kurt = Total damage – amount paid by insurance company
Substitute the values in the formula :
Amount paid by Kurt = $18,050 - $15,000 = $3,050
Therefore, he will have to pay the remaining $3,050
Answer:
True
Explanation:
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