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2 years ago

An increase in government spending shows up exclusively as a change in real gdp when?

Business

1 answer:

IRINA_888 [86]2 years ago

3 0

It shows up exclusively when the price level is assumed to be constant.

Real gross domestic product (real GDP), also known as constant-price GDP, inflation-corrected GDP, or constant dollar GDP, is an inflation-adjusted metric that measures the value of all goods and services generated by an economy in a given year (expressed in base-year prices).

Real GDP is a macroeconomic metric that accounts for inflation and quantifies the worth of the products and services generated by an economy over a given time period. In essence, it calculates a nation's overall economic production after accounting for price changes.

Governments analyze economic growth and purchasing power over time using both nominal and real GDP as measurements. The GDP price deflator, also known as the implicit price deflator, which tracks changes in prices for all products and services produced in an economy, is used to do this.

A quarterly report on GDP is released by the Bureau of Economic Analysis (BEA), and it includes headline data figures that reflect real GDP levels and real GDP growth.

Therefore, An increase in government spending shows up exclusively as a change in <u>real GDP</u> when the price level is assumed to be constant.

For more information on GDP, refer to the given link:

brainly.com/question/14326341

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3 years ago

When the economy is producing the level of output equal to natural Real GDP, the unemployment rate is equal to :A. zero. B. the

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Answer:

B. the natural unemployment rate.

Explanation:

When the level of output is equal to natural real GDP, it indicates that the country has reach a very optimal level of production has efficiently utilize all resources that it has in its disposal. These 'Resources' include both human , capital, and natural resources.

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3 years ago

It costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges with firm B, it

Zigmanuir [339]

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