They are estimating the Nominal GDP. The Nominal GDP measures the quarterly economic output that occurred in the year. This would analyze production, employment, all the elements in the financial circulation. This is different from the real GDP because here it would include the inflation of prices that occurred. Nominal GDP only reflects on the economical changed within the current year regardless of inflation.
Answer: Option (a) is correct.
Explanation:
Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.
If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.
The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.
If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.
So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.
This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.
Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.
Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.
Answer:
The answer is D. Activity attributes
Explanation:
Activity attributes are descriptive components of an activity. Examples of these attributes include; activity name, description and responsible person.
Answer: The consumer price index will increase, but the GDP deflator will not increase.
Explanation:CPI(Consumer p ice index) is a concept used in Macroeconomics to mean the weighted average of the prices of
A basket of consumer goods and services.
GDP(gross domestic product) Is the value of the entire goods and services rendered within an economy over a given period of time.
GDP Deflator determines the price changes of all goods and services produced within an country.
As the price of Italian shoes imported into the Unites States of America rises the CPI INCREASES BUT THE GDP DEFLATOR WILL NOT INCREASE.
