Answer:
1. GDP is an indicator of a society's standard of living, but it is only a rough indicator because it does not directly account for leisure, environmental quality, levels of health and education, activities conducted outside the market, changes in inequality of income, increases in variety, increases in technology. 2. Real GDP is accurate to hundreds of dollars; nominal GDP is accurate to thousands of dollars. 3. Nominal GDP is an assessment of economic production in an economy that includes current prices in its calculation. 4. The four stages of the cycle are expansion, peak, contraction, and trough. Factors such as GDP, interest rates, total employment, and consumer spending, can help determine the current stage of the economic cycle. Insight into economic cycles can be very useful for businesses and investors.
Explanation:
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Answer:
The present worth of their cost over a 10-year period at an interest rate of 10% per year is 114,627,795.36
Explanation:
Detailed steps are attached below
When the individual calculates the effective rate of the loan, the most appropriate statement is the effective rate will exceed the nominal rate.
<h3>What is effective annual rate?</h3>
The effective annual rate (EAR) is the interest rate for the entire year. Interest Charges Interest expense is incurred when a corporation funds itself with debt or capital leases.
Interest appears on the income statement, but it can also be earned on an investment or paid on a loan as a result of compounding interest over time.
It is usually higher than the marginal rate and is used to evaluate different financial products with varying compounding periods - weekly, monthly, yearly, and so on.
When the number of compounding periods is increased, the effective yearly interest rate rises over time.
Therefore, the correct option is A.
Learn more about the effective rates of the loans here:
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<span>The measure of economic performance that compares how much a system produces versus the resources required to produce it, is known as *productivity*.</span>