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Scorpion4ik [409]
3 years ago
6

Year Nominal GDP Real GDP GDP Deflator (Dollars) (Base year 2016, dollars) 2016 2017 2018 From 2017 to 2018, nominal GDP , and r

eal GDP. The inflation rate in 2018 was.
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Business
1 answer:
FromTheMoon [43]3 years ago
6 0

Answer:

Explanation:

The Real GDP is defined as the Nominal GDP minus the inflation effect.

Real GDP provides a more accurate picture of economic growth than nominal GDP because it uses constant prices, making comparisons between years more meaningful by allowing for comparisons of the actual volume of goods and services without considering inflation.

Let's say you bought apples at 5dollars per pound in 2015. Imagining a country of 1000 people and considering everyone bought a pound apples and only apples in that year, the GDP comes out to be 1000*5 = 5000 dollars.

Now let's say inflation rate is 10 percent in 2016 which will increase the price to 5.5 dollars per pound. Also, in one year, 10 more people were added to the country (No of births - No of deaths = New people in that year), this brings out total population to around 1010.

Also, let's say that the sale of apples remained the same, so the GDP of 2016 comes out to be 1000*5.5 = 5500 dollars.

That's a whooping 10% increase in GDP, right?

But here the catch.

The GDP increased not because the demand increased, but because the price of the good increased.

If we see at previous year's price (Not considering the inflation, also called Real GDP), the GDP is same which is 5000 dollars.

So, in reality, there isn't any increase in GDP.

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5 0
2 years ago
What are the 4 important dimension of wellness explain each dimension?
swat32

The 4 important dimension of wellness explain each dimension.

  1. Spiritual
  2. Emotional
  3. Physical
  4. Social wellness support.

Why is wellness dimensions important?

Every aspect influences and overlaps with the others to form a part of our individual feeling of wellness or quality of life. When one dimension is neglected for an extended period of time, the entire health can suffer. Sometimes one dimension may be more prominent than others.

<h3>Explaining the 4 important dimension of wellness ?</h3>

Spiritual Wellness:

Our willingness to make sacrifices for others, our country, and the greater good is motivated by our spiritual fortitude. It may result from a person's religious conviction, family history, life experiences in our community, the impact of role models, or other inspirations.

Emotional Wellness:

Building self-awareness and emotional acceptance is referred to as emotional wellbeing. It entails figuring out how to promote optimistic thinking and self-acceptance.

Physical Wellness:

Learning more about your lifestyle, including how food, a healthy diet, and exercise, can be a vital part of it, is a part of physical wellness.

Social Wellness:

Being aware of how your behavior affects your surroundings, society, and the environment is a necessary component of social wellness.

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3 0
2 years ago
A boss tells her employee, "If you don't get me those figures in the next five minutes, you're fired!" This is an example of whi
kiruha [24]

Answer:

Coercive power

Explanation:

This boss is exercising coercive power. Such a power stems from a place of authority. The boss is hereby using force to ensure that this employee follows orders. In a situation whereby the employee fails to do what is expected of him, such a boss has the power to punish this boss for not complying with set instructions. This type of power can be used to make sure that Employees remain disciplined in an organization.

4 0
3 years ago
Which of the following gives the best definition of cartel?
Ilia_Sergeevich [38]

Answer:

d

Explanation:

6 0
3 years ago
Your Godmother left you an inheritance of ​$100,000​, payable to you when you turn 26 years old. You are now 21.​ Currently, the
KIM [24]

Answer:

The offer should be accepted

Explanation:

It is known that the amount $100,000 will be paid to someone when he turns 26 years. The current age is 21 years.

the 5-years bond is given 3.1 percent of interest rate.

another option for the person is offered $103,021.02 right away which is the present value.

The present value of the $100,000 that is going to be received after 5 years is calculated as follows;

Present value =  Amount to be received /(1+interest rate/100)^t

                        = 100,000/(1+ 3.1/100)⁵

                         = 100,000/ 1.031⁵

                         = $85,843.35

Therefore, the present value is $85,843.35 for the amount $100,000 to be receive after five years.

Since the amount  $103,012.02 he was offered is greater than the present value of his inheritance after 5-years, the person should accept the offer  and forget about the inheritance of $100,000.

6 0
3 years ago
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