1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Akimi4 [234]
3 years ago
12

During a presidential campaign, the incumbent argues that he should be reelected because GDP grew by 12 percent during his 4-yea

r term in office. You know that population grew by 4 percent over the period, and that the GDP deflator increased by 6 percent during the past 4 years. You should conclude that real GDP per person
A. grew by 2%B. grew by 6%C. grew by 8%D. grew by 12%
Business
1 answer:
KengaRu [80]3 years ago
8 0

Answer: The real GDP per person grew by 8%. Option C is the correct option

Explanation:

To calculate the real GDP per person, we have to calculate the real GDP growth rate in respect to the growth in population and deflator rate, then multiply it with the GDP growth.

GDP deflator = Nominal GDP ÷ Real GDP

The nominal GDP which includes the addition of population will grow by 4% since the population growth was 4%

GDP deflator increase by 6%

Therefore;

Real GDP = 4% ÷ 6% = 0.66667

THE REAL GDP PER PER PERSON

12% × 0.66667 = 8.00004%

Therefore the the real GDP per person is 8%, which is less than what he said.

You might be interested in
Why is saving, spending and investing important? long summary
grandymaker [24]
Saving money is important because of you run in to a problem like your car breaking down you need to have money to fix it. Also saving money is important because you will able to do things like going on vacation. Investing is important because I one thing goes bad you still have other incomes coming in.

Hope this helps
3 0
2 years ago
Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then red
ololo11 [35]

Answer:

The price of the stock today or the price at which the stock should sell today is $61.30

Explanation:

The price of the stock today can be calculated using the Dividend Discount Model approach which values a stock based on the present value of the expected future dividends from the stock. The price of this stock will be,

P0 = 3.15 * (1+0.2) / (1+0.12)  +  3.15  * (1+0.2) * (1+0.15)  /  (1+0.12)^2  +  

3.15 * (1+0.2) * (1+0.15) * (1+0.1) / (1+0.12)^3  +  

[(3.15 * (1+0.2) * (1+0.15) * (1+0.1) * (1+0.05) / (0.12 - 0.05))  / (1+0.12)^3]

P0 = $61.296 rounded off to $61.30

5 0
3 years ago
Liquidity risk is defined as the risk of A. not being able to sell an investment conveniently and at a reasonable price. B. havi
Soloha48 [4]

Answer:

having declining price levels affect the reinvestment rate of your current income stream

3 0
2 years ago
Basic courses offered specifically to prepare students for college-level courses are called
natali 33 [55]
D) Developmental courses

These are courses that are given to students upon placement test scores that show that the student may not be prepared for the class.
3 0
3 years ago
Read 2 more answers
________ exists when a large number of firms produce goods that are similar but customers believe there is a difference.
hichkok12 [17]

Answer:

Monopolistic Competition

Explanation:

4 0
2 years ago
Read 2 more answers
Other questions:
  • Trust Company applies overhead based on direct labor hours. At the beginning of the year, Trust estimates overhead to be $700,00
    6·1 answer
  • In an attempt to make a conflict between two employees less personal and emotional, their manager assigns each of them to approa
    14·2 answers
  • What is a means exam?
    8·2 answers
  • Capacity of a ship used to determine taxation of the ship by its country of registry or by port or canal authorities is called
    14·1 answer
  • Out of state seller sold a property for $489,000. The property was highly leveraged resulting in cash proceeds to the seller of
    6·1 answer
  • Britney, a teenager, starts her own business of selling cupcakes to coffee shops and restaurants. she strives to increase either
    15·1 answer
  • Edgar Co. determines from a physical inventory count taken on the last day of fiscal 20X7 that its LIFO-basis inventory of widge
    14·1 answer
  • Which of the following is the best example of an ethical statement?
    11·1 answer
  • What had to develop in a society before sports and entertainment marketing made sense as a business?
    14·1 answer
  • an improved charging/discharging strategy of lithium batteries considering depreciation cost in day-ahead microgrid scheduling
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!