Answer: GDP data that has been adjusted for changes in the price level
Explanation:
Real GDP refers to the Nominal GDP adjusted for inflation. Nominal GDP calculates the value of final goods and services in the Economy by using the price levels of that year so if inflation has occurred, comparing it to previous years would be inaccurate.
The Real GDP would use the price levels of a base year to calculate the GDP of the current year so that the effect of inflation may be negated and the real growth of the economy can be seen.
Answer: 
GDP contribution is $6.
Explanation: GDP refers to the market value of final goods and services produced withing the national territory of a country.
Using the value added method, we can calculate GDP by summing up the value added at each level of production.
Or
Using the expenditure approach, GDP is the market value of the final good sold to the customer.
GDP = Cost of bread to the engineer = $6
Answer:
c. 1.6 percent.
Explanation:
GDP Deflator = Nominal GDP / Real GDP * 100
year 1
Real GDP = $2250 billion/72*100
= $ 3125.
year 2
Real GDP = $2508 billion/79*100
= $3175
Real GDP rose by = Real GDP (2nd year) - Real GDP (1st year)
= $3175 - $3125
= $ 50
% increase = $50/$2,250*100
= 1.6%
Therefore, The Real GDP rose by 1.6%.
Answer:
It will affect Wendy's fast- food sales negatively.
Explanation:
Especially if the competitors have larger market share than Wendy's Fast-food. There will be a switch in consumers from Wendy's Fast-food to it's competitor, therefore reducing its sales and invariably reducing it's profit.
Therefore, Wendy's fast-food should be in tune with price fluctuation of it's competitors especially if it is a price decrease.
Answer:
Explanation:
The computation is shown below:
Corporate tax = (Taxable income - bonus expenses) × corporate tax rate
= (925,000 - $153,000) × 21%
= $162,120
The corporate tax rate is 21% and we take the same for computation
Shareholder tax = Bonus expenses × marginal tax rate
= $153,000 × 35%
= $53,550
So, the total income tax would be equal to
= $162,120 + $53,550
= $215,670
