Nominal GDP and Real GDP are described below
Explanation:
The nominal value of a good is its value in terms of money. The real value is its value in terms of some other good, service, or bundle of goods.
Examples:
Nominal: That CD costs $18. Japan’s science and technology spending is about 3 trillion yen per year.
Real: A year of college costs about the value of a Toyota Camry. Those tickets to see Van Halen cost me three weeks’ worth of food!
2.Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation. Real GDP is nominal GDP, adjusted for inflation to reflect changes in real output. Trends in the GDP deflator are similar to changes in the Consumer Price Index, which is a different way of measuring inflation.
3.. Therefore, nominal GDP will include all of the changes in market prices that have occurred during the current year due to inflation or deflation. ... In order to abstract from changes in the overall price level, another measure of GDP called real GDP is often used.
4.The main difference between nominal GDP and real GDP is the adjustment for inflation. Since nominal GDP is calculated using current prices it does not require any adjustments for inflation. This makes comparisons from quarter to quarter and year to year much simpler to calculate and analyze.
5.Real Gross Domestic Product or real GDP is a measure of the value of economic output like inflation or deflation of prices . Nominal GDP on the other hand is a figure which has not been adjusted for any inflation.
Answer:
c. Her mortgage payments and necessities are fixed
Explanation:
Discretionary income is the remaining income after being paid out for all fixed expenses (i.e. Discretionary income = Salary - Mortgage - Income tax etc). The primary reason for variability in it is due to the mortgage payment and fixed expenses from the basic salary received.
So, option c is correct while other options are incorrect as tax does not affect as well as cost of living
Answer:
A. From the appreciation of the bonds
Explanation:
Zero or very low coupon bond do not pay much (coupon) in their life (so C eliminated). They are sold at a deep discount to investor. As time pass, the value of the bond usually increases to approach face value (hence A).
Normally investor still have to pay for the imputed ("phantom") interest that comes from their real return (B eliminated)
If interest rate increases, the bond will decreases in value to create the required return the new buyer when they eventually sell it (D eliminated)
Answer:
The Journal entries are as follows:
On September 1,
(a) Cash A/c [8,500 × $14] Dr. $119,000
Excess of paid in capital A/c [8,500 × $1] Dr. $8,500
To treasury stock $127,500
(To record the treasury shares for cash)
(b) Cash A/c [8,500 × $11] Dr. $93,500
Excess of paid in capital A/c Dr. $20,000
Retained earnings A/c Dr. $14,000
To Treasury stock $127,500
(To record the restate entry for September 1)
Answer: $41,600
Explanation: The percentage of receivables method is used to evaluate the amount of bad debt the company can experience in future. Under this method, the bad debt expense is the difference between the ledger balance and the actual balance of bad debt expense.
In the given case, we can calculate it as follows :-
Bad debt expense = estimated uncollectible accounts - allowance
= $47,000 - $5,400
= $41,600
