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2 years ago

In comparing GDP data over a period of years, a difference between nominal and real GDP may arise because:

Business

1 answer:

Dvinal [7]2 years ago

8 0

Answer:

of changes in price level

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year.

Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

For example, country A produces 10 kg of rice at $10 per kg in 2019 and 50kg of beans at $30 per kg in 2018. In 2019, it produces 10 kg of rice at $20 per kg in 2019 and 50kg of beans at $40 per kg in 2019. 2018 is the base year.

Nominal GDP in 2018 = (10 x $10) + (50 x $30) = $1600

Nominal GDP in 2019 = (10 x $20) + (50 x $40) = $2200

Real GDP in 2018 = (10 x $10) + (50 x $30) = $1600

Real GDP in 2020 = (10 x $10) + (50 x $30) = $1600

We can see that even though the country produced the same quantity of outputs in both years, nominal GDP differed but when the effect of rise in prices was eliminated, real GDP for both years was the same.

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Radda [10]

<h2>Joshua would lose and Sue would benefit from unanticipated inflation.</h2>

Explanation:

Both Joshua and Sue are associated with fixed pension and fixed interest respectively.
Now the value of money goes down due to inflation
So to live as usual, Joshua need to spend some extra money. But considering the fixed income, it's a lose to Joshua
Whereas Sue is associated with fixed interest of mortgage. She is benefited because, though the inflation has changed the value of all other products, but the fixed interest rate does not change.
"Fixed-rate mortgage holders are inflation winners", says "Thoma, professor of economics at the University of Oregon"

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3 years ago

The Baldwin Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The exp

Svet_ta [14]

Answer:

b. $4,908,000

Explanation:

According to the FASB GAAP, the straight line method is used in this given question which is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($40,900,000 - $4,090,000) ÷ (15 years)

= ($36,810,000) ÷ (15 years)

= $2,454,000

In this method, the depreciation is same for all the remaining useful life

For two years, the accumulated depreciation would be

= Annual year depreciation × number of years

= $2,454,000 × 2 years

= $4,908,000

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3 years ago

the key to being a good follower is to think for oneself and to work well without close supervision. this is referred to as ___

swat32

The answer is, "this is referred to as self-management".

There are four essential Qualities of Effective Followers, which includes;
Self-management
Commitment
Competence and focus
Courage
Self management is considered as the key to being a good follower. <span>Effective group members can see themselves as they are as capable as their leaders.</span>

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2 years ago

John Park lives in Anytown, Missouri. He rents an apartment on Broad Street. He has one credit card with National Bank. He pays

alexandr1967 [171]

Answer:

its 1,3,4,6

Explanation:

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3 years ago

What level of measurement (nominal, ordinal, interval, ratio) is appropriate for the movie rating system that you see in tv guid

amid [387]

the movie rating system uses an ordinal measurement system because ordinal measurement allows for rank order. In this case, we are ranking appropriateness for family viewing. We know the G rated movies are better than R rated movies, but we are unable to put a quantifiable value on how much better.

Also, we don't know if the difference between a G-rated and PG-rated is the same as the difference between PG-rated and PG13-rated.

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3 years ago