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A actual increase in GDP.
no
Well, for a nations real Gross Domestic Product (GDP) per capita to rise in a particular year a multitude of things need to occur. First we need to understand that per capita GDP is simply all the goods and services produced in a particular nation within a specific time period. In this case one year, divided amongst the number of people living in that nation. $10,000 GDP divided by 100 citizens = per capita GDP of $100. The second thing that we need to understand is that "real" GDP means that it has been adjusted for inflation, or that the fact that things generally increase in price and there fore weaken the purchasing power of the dollar versus the year prior has be taken into consideration. Once you understand these two things here's what needs to happen to increase a countrys' real GDP per capita. The nations GDP (all the goods and services produced with the nation) must exceed the previous years GDP plus the amount of inflation incurred. If last years GDP was $10,000 and this years is $10,500 with an inflation increase of 3% then you have a real GDP per capita increase of $200. ( $10,000 plus a 3% inflation equals $10,300 minused from the new GDP of $10,500 equals a $200 increase in real GDP percapita )( this is considering a change in population didn't occur) Real GDP per capita is found by dividing real GDP by population.
Why doesn't an increase in aggregate demand translate directly into an increase in real GDP
no
Germany has the largest GDP of any European nation. Luxembourg has the largest GDP per capita rate of any European nation, and any country of the world.
basically the role of oversease is raising the gdp of a certain nation this point is worth noting which is unlukily ignored
GDP is the gross domestic product. It is a pretty accurate indicator of the wealth of an entire nation. If a nation is wealthy, then chances are most of the people within that nation are somewhat wealthy as well.
GDP Decreases and Debt Increases
inventories will increase and real GDP will decline.
the value of the dollar is stable
debt increases and GDP decreases.