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Answer:
D. The change in real GDP cannot be determined without more information.
Explanation:
GDP is the total value (P X Q) of final goods & services produced in an economy during a period of time.
Real GDP is measured at constant base year price level, such that it reflects change only due to quantity & not price rise (inflation).
Nominal GDP is measured at current year price level, it reflects change due to both quantity & price rise (inflation).
Nominal GDP / Real GDP = GDP Deflator. It measures the average price level change in current period relative to base period, helps eliminating price change effect & converting Nominal GDP into Real GDP .
Cannedada: 2018 Nominal GDP = $4 Billion, 2019 Nominal GDP = $5 Billion
Nominal GDP has increased between 2008 & 2009. Production rise between 2008, 2009 cant be found without 2009 Real GDP. Average price level rise between 2008 & 2009 cant be found without 2009 Real GDP (through GDP deflator).
Answer:
(a) the optimal production run quantity (Q) = 633
(b) the total annual inventory cost (AHC AOC) = $ 3,162.28
(c) the optimal number of production runs per year = 7
(d) The run length (production run time) = 16 days
Explanation:
(a) the optimal production run quantity (Q).
optimal production run quantity = √(2×Annual Demand×Setup Costs) / Holding Costs
= √(2×4000×$250)/ $5
= 633
(b) the total annual inventory cost (AHC AOC).
total annual inventory cost = Setup Costs + Holding Costs
= 4,000/633×$250+633/2×$5
= $1,579.78+$1,582.50
= $ 3,162.28
(c) the optimal number of production runs per year.
number of production runs per year = Total Demand / optimal production run quantity
= 4,000/633
= 7
(d) The run length (production run time).
production run time = optimal production run quantity / produce
= 633 / 40 cakes
= 16 days
Answer:
31.21%
Explanation:
The balance last month was $785
The new balance is $540
It means a payment of $785- $540 was made
=$785 - $540
=$245
As a percentage
=$245/$785 x 100
=0.3121 x 100
=31.21%
Solution :
Given :
The bonds offer a 
of 4.5% per year
Tax rate = 10% = 0.10
Inflation rate = 2
= + 
= 2 + 4.5
= 6.5
= 
= 
= 5.85
After tax real interest rate = 
-
= 5.85 - 2.0
= 3.85
= 7.0
= +
= 7 + 4.5
= 11.5
= 
= 10.35
= 11.5 x (1 - 0.10)
= 11.5 x 0.90
= 10.35
= -
= 10.35 - 7.0
= 3.35
Putting all the value in table :
Real interest Nominal interest After tax nominal After tax
rate rate interest rate interest rate
2.0 4.5 6.5 5.85 3.85
7.0 4.5 11.5 10.35 3.35
Comparing with the 
, a 
will increase the after after tax real interest rate when the government taxes nominal interest income. This tends to encourage saving, thereby increase the quantity of investment in the economy and the increase the economy's long-run growth rate.
