All categories

1 year ago

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

Business

1 answer:

IRINA_888 [86]1 year 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 real GDP when the price level is assumed to be constant.

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

brainly.com/question/14326341

#SPJ4

You might be interested in

Mineral-rich Democratic Republic of the Congo is one of the world's most important sources of uranium. It also is a source of co

ratelena [41]

Answer: Two

Explanation:

According to the paragraph above, the DRC produces both cotton and cottonseed. Both of these are cotton products. First the cotton that surrounds the seed is removed by the process of ginning and then processed for clothing.

Then the cottonseed can also be processed to extract the oil contained in it. This oil can be used to make candles, cosmetics and insecticide. After the oil is extracted, the seed can then be used to feed livestock.

3 0

2 years ago

When he became the president of Jem Incorporated, John Smith changed the date of the weekly payday from the end of the day on Mo

vladimir2022 [97]

Answer: $1.3 million

Explanation:

Based on the information given in the question, if this change delayed check clearing by 1 week, then the annual savings that were realized will be:

= Weekly payroll × Cost of short term funds

= $10 million × 13%

= $10 million × 0.13

= $1.3 million

Annual savings realized is $1.3 million.

6 0

2 years ago

The following is a condensed version of the comparative balance sheets for Sweet Corporation for the last two years at December

notsponge [240]

Answer:

Cash flow from operating activities

Net income $352,000

Adjustment to reconcile net income to

net Cash flow from operating activities

Depreciation expense $26,350

Loss on investment sold $15,500

Decrease account receivable $7,750

Decrease current liabilities -$26,350

Net cash flow from operating activities $348,250

Cash flow from investing activities

Sale of investment $12,100

Purchase of equipment -$89,900

Net cash used investing activities -$77,800

Cash flow from financing activities

Dividend paid -$66,000

Net cash used financing activities -$66,000

Net cash increase (decrease) $204,450

Beginning Cash $120,900

Ending Cash $325,350

6 0

2 years ago

The brake pedal is low and spongy ; all brake adjustments have been completed according to specifications.the cause of the probl

Aleksandr-060686 [28]

The problem could most likely be a weak hydraulic brake hose.
A weak hydraulic brake hose could cause a spongy pedal. As the pressure builds in the system, the hose may expand and not relay the pressure to the brake units.

6 0

3 years ago

On December 31, 2018, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,0

Andru [333]

Answer and Explanation:

The Journal entry is shown below:-

a. Bad Debt Expense Dr, $36,800 ($40,000 – $3,200)

To Allowance for Doubtful Accounts $36,800

(Being the bad debt expense is recorded)

For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited

b. Bad Debt Expense Dr, $40,730 ($40,000 + $730)

To Allowance for Doubtful Accounts $40,730

For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited

7 0

3 years ago