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2 years ago

If real gdp in a year was $3,668 billion and the price index was 112, then nominal gdp in that year was approximately

Business

1 answer:

xenn [34]2 years ago

6 0

The nominal GDP in that year will be $4018 billion.

<h3>What is Nominal GDP?</h3>

Nominal gross domestic product is GDP calculated using the most recent market prices. GDP measures the monetary worth of all the goods and services a nation produces. Nominal GDP differs from real GDP in that it considers inflation, which represents how quickly prices are rising in an economy.
The monetary worth of the products and services produced is the standard way to calculate GDP.
Nominal GDP can overstate the growth rate because it does not account for the rate of price increases when comparing one period to another.
Growing pricing rather than increasing the number of goods and services produced may cause nominal GDP growth from year to year.
Nominal GDP is the starting point, whereas real GDP includes price changes.

we know that

Nominal GDP = Real GDP × Price index

Nominal GDP = $3668 × .112

Nominal GDP = $4018

hence, the nominal GDP in that year will be $4018 billion.

To learn more about Nominal GDP with the given link

brainly.com/question/15171681

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How much would Israel’s nominal GDP growth be next year if it experienced real GDP growth next year the same as its average over

NNADVOKAT [17]

Answer:

Nominal GDP growth = 7.25%

Explanation:

Given:

Inflation rate = 3%

Population growth = 1%

Note:

Growth rate in real GDP (Not given) = 3.25%

Find:

Nominal GDP growth

Computation:

Nominal GDP growth = Inflation rate + Population growth + Growth rate in real GDP

Nominal GDP growth = 3% + 1% + 3.25%

Nominal GDP growth = 7.25%

8 0

3 years ago

Problem 16-17 Firm Value [LO2] Change Corporation expects an EBIT of $25,000 every year forever. The company currently has no de

PolarNik [594]

Answer and Explanation:

The computation is shown below:

a. The current value of the company is

As it is mentioned that the company has no debt that means it is unlevered firm that is equivalent to unlevered value of the company

Unlevered value of the firm = Vu

Vu = EBIT × (1 - tax rate ) ÷ unlevered Cost of Equity

= EBIT × (1 - tax rate ) ÷ R0

= $25,000 × (1 - 0.22 ) ÷ 12%

= $162,500

b-1.

The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of unlevered value

VL = Vu + Borrowing × tax rate

where,

Debt = borrowing = 50% × unlevered value of company

Debt = borrowing = 50% x Vu

So,

VL = Vu + Borrowing x tax rate

VL = $162,500 + ($162,500 × 50%) × 22%

= $162,500 + $17,875

= $180,375

b-2.

The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of unlevered value

Levered value of the firm VL

VL = Vu + Borrowing × tax rate

Debt = borrowing = 100% × unlevered value of company

Debt = borrowing = 100% × Vu

So,

VL = Vu + Borrowing x tax rate

= $162,500 + ($162,500 × 100%) × 22%

= $162,500 + 35,750

= $198,250

C.1.

The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of the levered value

VL = Vu + Borrowing × tax rate

= Vu + (VL × 50%) × tax rate

VL = Vu + (VL × 50%) × 22%

VL = Vu + 0.11 VL

VL - 0.11 VL = 162,500

0.89 VL = 162,500

VL= 182,584.27

C.2.

The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of the levered value

Levered value of the firm VL

VL = Vu + Borrowing x tax rate

VL = Vu + (VL × 100%) × tax rate

= Vu + (VL × 100%) × 22%

= Vu + 0.22 VL

VL - 0.22 VL = 162,500

0.78 VL = 162,500

VL= $208,333.33

6 0

3 years ago

an efficiency wage is a: system of tying wage rates to overall factory efficiency rather than personal productivity. higher wage

krok68 [10]

An efficiency wage is a higher wage paid to reward workers who show greater productivity. Option D is correct.

<h3>What is the Efficiency wage?</h3>

Wages provided to employees over the minimum wage in order to retain a trained and efficient staff are referred to as efficiency wages. Adam Smith defined a type of pay disparity in the 18th century, in which workers in some businesses are paid more than others based on the level of trustworthiness necessary.

Employers establish efficiency salaries above the equilibrium wage rate as an incentive for better employee performance. An efficiency wage is a higher wage provided to employees who are more productive.

Therefore, option D is correct.

Learn more about the efficiency wage, refer to:

brainly.com/question/27960552

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8 0

1 year ago

Which of the following statements about boundary managers is true? a. Boundary managers persuade top management to support the t

Gelneren [198K]

Answer:

Explanation:

The way in which boundaries are managed can affect organisational function. For effective functioning, it is important to set up boundaries to create levels of distinctions and integration.

It is The boundary manager determines how a team can work with others that are interested in how the team performs and they persuade too management to support the teams work.

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3 years ago

When buyers use ___________________ to draw inferences about the quality of products, then markets may have trouble reaching ___

bagirrra123 [75]

Answer:

Market price; Equilibrium price

Explanation:

The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. This is the point at which the demand and supply curves in the market intersect. It become hard to reach equilibrium price and quantity when customers infer the quality of a product by its price cos that will inform their purchasing decision.

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3 years ago