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3 years ago

Item 3 What do economists call GDP that uses constant, unchanging prices? constant GDP real GDP nominal GDP factual GDP

Business

1 answer:

Ivenika [448]3 years ago

7 0

Economists call GDP that uses constant, unchanging prices as

Real GDP

Explanation:

Real gross domestic product (real GDP for short) is a macroeconomic measure of the value of economic output adjusted for price changes . This adjustment transforms the money-value measure, nominal GDP, into an index for quantity of total output.
It is calculated using the prices of a selected base year. To calculate Real GDP, you must determine how much GDP has been changed by inflation since the base year, and divide out the inflation each year.
Real GDP accounts for the fact that if prices change but output doesn't, nominal GDP would change.
The real economic growth, or real GDP growth rate, measures economic growth as it relates to the gross domestic product (GDP) from one period to another, adjusted for inflation, and expressed in real terms as opposed to nominal terms

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_____ macroeconomists focused on the _____ effects of _____ policy on the aggregate price level, ignoring any _____ effects on a

vichka [17]

Answer:

CLASSICAL macroeconomists focused on the LONG-RUN effects of MONETARY policy on the aggregate price level, ignoring any SHORT-RUN effects on aggregate output.

Explanation:

Classical macroeconomists focused mostly on the long-run since they perceived the economy was self-adjusting. That means that they should only set a guideline for the economy, and the economy itself would adjust to fulfill that guideline.

For example, just because the Fed carries out an expansionary monetary policy by lowering interest rates, it doesn't mean that the economy will start to grow and unemployment will lower. Other adjustments are necessary, like a tax reduction or an increase in government spending.

6 0

3 years ago

Layton Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 13 years to maturit

Leni [432]

Answer:

Bond Price= $2,162.94

Explanation:

Giving the following information:

Par value= $2,000

YTM= 0.038/2= 0.019

Coupon= (0.046/2)*2,000= $46

Years to maturity= 13*2= 26

To calculate the price of the bond, we need to use the following formula:

Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price= 46*{[1 - (1.019^-26)] / 0.019} + [2,000 / (1.019^26)]

Bond Price= 936.91 + 1,226.03

Bond Price= $2,162.94

7 0

2 years ago

Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the compa

Whitepunk [10]

Answer:

$110,000

Explanation:

Calculation for How much was stockholders' equity at the end of the year

Beginning balance of stockholders' equity $40,000

Add net income $90,000

Less the dividends paid ($20,000)

Ending stockholders' equity $110,000

Therefore How much was stockholders' equity at the end of the year is $110,000

5 0

2 years ago

Run Like the Wind sells ceiling fans. Target profit for the year is $470,000. If each fan's contribution margin is $32 and fixed

PSYCHO15rus [73]

Answer:

c. 21,645

Explanation:

The computation of number of fans required to meet the company's goal is shown below:

= (Fixed cost+ target profit) ÷ (Contribution margin per unit)

= ($222,640 + $470,000) ÷ ($32)

= ($692,640) ÷ ($32)

= $21,645

The contribution margin per unit = Selling price per unit - Variable expense per unit

Therefore, the number of fans equal to $21,645

We calculated by above formula.

4 0

3 years ago

Just before the year ended, a company offered to buy 4,120 units for $14.95 each. X Company had the capacity to produce the addi

Burka [1]

Answer:

Explanation:

Profit on special order = 7847.7 or 7848 Selling price 11 Variable cost special material 0.72 Cost of goods sold 6.69 Selling and administrative cost 1.02 Total variable cost per unit Particulars Per Unit 64500 Units Sales 19 1225500 Less: Variable cost Cost of Goods Sold (521805-130935) 6.06 390870 Sales commission (Sales*4%) 0

4 0

3 years ago