1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
deff fn [24]
3 years ago
11

You are trying to explain to your friends the importance of using real GDP to measure economic health over time, but some of the

m still insist that nominal GDP is equally good. Use the data given below to show your friends the difference between real and nominal GDP. Nominal GDP (millions of dollars) = $14000. Price level (GDP deflator) = 88. What is real GDP given the nominal GDP and price level (GDP deflator)?
Business
1 answer:
Yuri [45]3 years ago
3 0

Answer: $15,909.09

Explanation:

Nominal GDP is the value of goods and services that is calculated on the basis of current year prices whereas Real GDP is the value of goods and services that is determined on the basis of Base year prices. If we are using the identical price for both the years for calculating GDP then we can see the increment in the current year GDP from the last year. This means that the quantity of goods produced in the current year is larger than the last year. That's why it is important to use Real GDP rather than Nominal GDP.

Given that,

Nominal GDP (millions of dollars) = $14000

Price level (GDP deflator) = 88

\text{GDP dflator}=\frac{Nominal\ GDP}{Real\ GDP}\times100

\text{88}=\frac{14,000}{Real\ GDP}\times100

Real GDP = 159.09 × 100

                = $15,909.09

Hence, Real GDP = $15,909.09.

Therefore, Real GDP is greater than Nominal GDP hence we can say that the amount of good produced is worth more than $14,000.

You might be interested in
Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $
Vlad1618 [11]

Answer:

c. 10.38%

Explanation:

Loan Amount = $10,000

Quarterly Interest payment = $250

Interest Payment for the year = $250 x 4

Interest Payment for the year = $1,000

Nominal interest rate = ($1,000 / $10,000) x 100 = 10%

Nominal interest rate = r = 10%

Number of periods = m = 4

Effective Interest rate = [ ( 1 + r/m )^m]-1

Effective Interest rate = [ ( 1 + 0.1/4 )^4] -

Effective Interest rate = [ ( 1 + 0.025 )^4] -1

Effective Interest rate = 10.38%

6 0
3 years ago
In applying the high-low method, what is the fixed cost? month miles total cost january 80,000 $144,000 february 50,000 120,000
kupik [55]
The high and low levels of activity are 90,000 miles in April and 50,000 miles in February. The costs at these two levels are $195,000 and $120,000, re-spectively. The difference in costs is $75,000 ($195000-120000), and the difference in miles is 40,000 (90000-50000). Therefore, variable cost per unit is $1.875computed as follows.
75000÷40000=1.875

Determine the fixed costs by subtracting the total variable costs at either the high or the low activity level from the total cost at that activity level
Variable cost=1.875×50,000=93,750

fixed cost=120,000−93,750=26,250


5 0
3 years ago
What are the portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share and 115 shares of Stoc
statuscvo [17]

The portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share is: 0.6775; 0.3325.

<h3>Portfolio weight for each stock</h3>

First step

Total value = 185($64) + 115($49)

Total value = $17,475

Second step

Portfolio weight for each stock is:

Portfolio weight A = 185($64)/$17,475

Portfolio weight A = .6775

Portfolio weight B = 115($49)/$17,475

Portfolio weight B = .3225

Therefore the portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share is: 0.6775; 0.3325.

The portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share is: 0.6775; 0.3325.

Learn more about Portfolio weight here:brainly.com/question/17279790

8 0
2 years ago
Identify three features of an economic that is In the stage of ‘’economic growth’’
Pani-rosa [81]

Answer: They include land (including natural resources), capital, and labor.

Explanation:

6 0
2 years ago
Most of the financial information about an organization is based on information generated from accounting records. The reports a
Bond [772]

Answer: (D)

Explanation: Reports and financial statements prepared by accountants are useful tools to evaluate an organisation's liquidity,solvency and stability. It helps the general public and other stakeholders to get the required data and information needed for decision making.

The inflationary trends shows the relationship between demand and supply in an economy which will help management to implement the necessary steps that will enhance it's operations.

The balance of trade between 2 countries provides necessary details for decision makers on when and how to improve or manage exports and imports.

8 0
2 years ago
Other questions:
  • Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. Hu is using
    8·1 answer
  • which of the following resulted in a retaliation by the united states of increased tariffs on cheeses and meats from europe
    14·2 answers
  • The primary difference between product markets and factor markets is that
    13·1 answer
  • Which is a step in the research process?
    10·1 answer
  • Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve and total cost curve
    15·1 answer
  • A broker is an agent who:A. Trades on the floor of an exchange for himself or herself.B. Buys and sells from inventory.C. Offers
    12·1 answer
  • Language usage, delivery, and presentation aids fall under the ______ stage of informative speaking.
    12·1 answer
  • On April 1, the price of gas at Bob’s Corner Station was $3.80 per gallon. On May 1, the price was $4.30 per gallon. On June 1,
    10·1 answer
  • The rates of return on Cherry Jalopies, Inc., stock over the last five years were 22 percent, 11 percent, −4 percent, 6 percent,
    12·1 answer
  • The Sky Blue Corporation has the following adjusted trial balance at December 31. Debit Credit Cash $ 1,230 Accounts Receivable
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!