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OverLord2011 [107]
2 years ago
14

a. As prices rise, the cost for businesses to finance new equipment increases, causing a drop in quantity demanded of real GDP.

Business
1 answer:
Tanya [424]2 years ago
3 0

As prices rise, the cost for businesses to finance new equipment increases, causing a drop in quantity demanded of real GDP : the interest rate effect

What is GDP?

The total monetary or market worth of all the finished goods and services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP). It serves as a thorough assessment of the state of the economy in a particular nation because it is a wide indicator of total domestic production.

Even while GDP is frequently estimated on a yearly basis, it can also be calculated quarterly. For instance, the government of the United States produces an annualized GDP estimate for both the calendar year and each fiscal quarter. Each piece of data in this report is presented in real terms, which means that it has been adjusted for price changes and is therefore net of inflation.

Learn more about GDP with the help of given link:-

brainly.com/question/1383956

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