Answer:
Grew by 2%
Explanation:
Given: nominal GDP =12% positive value cause it grew by 12% during these years.
Population grew by 4%
GDP deflator = 6% positive value cause it also grew by 6%
Question says we must find real GDP per person for the 4 year term that the president has served for so we will use the formula to calculate GDP Deflator to actually solve for Real GDP as we know the formula is GDP Deflator= (nominal GDP per person%)/(Real GDP per person%)x100
So we already have the nominal GDP and the GDP deflator therefore we substitute to the above formula:
6% = (12%)/ (Real GDP per person percentage) x100, and now we solve for Real GDP per person%
Therefore we multiply both sides with Real GDP percentage and get:
Real GDP per person %( 6%) = 12% and then we divide both sides with 6%,
Therefore Real GDP is 2% so we also see that real GDP has actual grown by 2% because the GDP deflator grew instead of decreasing where nominal GDP is also positive so if we have a fraction where an answer is positive we know both fraction values must be positive pus if the GDP deflator increases both nominal and Real GDP increase and that’s the relationship they have.
Answer:
It will take 30 years for country Y’s GDP to catch up with that of country X
Explanation:
In this question. We are asked to calculate the number of years it will take a certain country Y to catch up with the GDP of a certain country X, given the annual growth rate in both countries.
We calculate the number of years as follows;
Firstly, we assign a variable to the value of the real GDP of country Y
let real
Let the real GDP of the country Y be n. This means that the GDP of country C will be 4 * n = 4n
With a 7% growth rate annual, country Y's Real GDP will be doubled in 70/7 = 10 years and;
With annual growth rate of 2.33% ,country x's Real GDP doubles in 70/2.33 = 30 years.(Approx)
Now in next 30 years x's Real GDP will be = 2x4n = 8n
and Y's Real GDP in next 30 years will be = 2x2x2xn = 8n.
thus , it will take 30 years to country Y to catch up to the level of country x.
Answer:
C. A situation where no economic agent would benefit by changing his or her behavior
Explanation:
An economic equilibrium is when the agents are optimizing their decisions and opposing market forces are equal. This point allows the economic agents to maximize their utility and any change from this point will cause all agents to move away from potential maximum benefits.
In a natural equilibrium there is usually no government intervention so option A is false. Option B gives only one agent potential benefits and as such there is no equilibrium. Option D is conditional and may or may not happen as when the agents find missing information they would optimize again and move to an equilibrium.
Hope that helps.
Answer:
Fiduciary call.
Explanation:
Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
A covered interest arbitrage can be defined as trading strategy in which an investor minimizes his or her currency risk by using a forward contract to hedge against the interest rate difference between two countries i.e the exchange rate risk. Thus, it's considered to be the most common interest rate arbitrage around the world.
Generally, when a protective put is combined with a forward contract it would generate equivalent outcomes at expiration to those of a fiduciary call.
This ultimately implies that, a fiduciary call combines both a call option and a bond that's risk free and matures on the expiry date of an option.
Answer:
Increase; a positive
Explanation:
An aggregate demand in economics terms is an economic measurement of the total amount of demand for all finished goods and services produced in an economy.
Aggregate demand is expressed as the total amount of money exchanged for those goods and service at a specific price level and point in time.
