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GDP = gross domestic product
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Why doesn't an increase in aggregate demand translate directly into an increase in real GDP?
Why doesn't an increase in aggregate demand translate directly into an increase in real GDP
If GDP increased by 5 percent and real GDP increased by 5 percent what has happened to the average price level?
If (nominal) GDP and real GDP are equal then average price levels are constant.
If aggregate expenditures are less than GDP then?
inventories will increase and real GDP will decline.
When can GDP increase at a faster rate than real GDP?
the value of the dollar is stable
What does GDP gap measure the difference between?
GDP Gap measures the percent difference in Real and Potential GDP
Why doesn't an increase in aggregate demand translate directly into an increase in real GDP?
Why doesn't an increase in aggregate demand translate directly into an increase in real GDP
If GDP increased by 5 percent and real GDP increased by 5 percent what has happened to the average price level?
If (nominal) GDP and real GDP are equal then average price levels are constant.
If aggregate expenditures are less than GDP then?
inventories will increase and real GDP will decline.
When can GDP increase at a faster rate than real GDP?
the value of the dollar is stable
What does GDP gap measure the difference between?
GDP Gap measures the percent difference in Real and Potential GDP
If your real GDP in 1973 was 4342 Billion in 2000 prices and your real GDP in 2000 was 9817 billion what is the total percentage increase from 1973 to 2000?
126.094% increase.
Umeployement increase when real GDP increases or real GDP decreases or output increases?
Unemployment causes GDP to decrease. GDP means gross domestic product. If there are no employees to create a product, the GDP goes down.
Increase in real GDP are often interpreted as increase in welfare. what are some problems with this interpretation?
Increase in Real GDP is often interpreted as increase in welfare because Increase in Real GDP causes an increase in average interest rate in an economy by which Government expenditures (Government purchases and transfer payments) increases. Problem with this interpretation is that the Real GDP increases due to increase in price level or money market by which real money supply decreases and money supply demanded exceeds real money supply. That means that people start demanding more money in order to full fill their requirements.
How economic growth of a country is measured?
Economic Growth can be defined as an increase in output produced by an economy in a period of time (usually a year) or an increase in the ability of an economy to produce goods and services. Economic Growth itself can be measured by measuring an increase in GDP, Real GDP (GDP adjusted for inflation), or Real GDP per capita (a measure of standard of living) which means the increase in real output per person.
What is the GDP of 45000 per capita with a 2 percent increase?
A 2% increase of 45,000 results in an increase of 900 to 45,900
Whats does an increase in nominal GDP imply?
When the nominal GDP increases it implies that prices have increased. Nominal GDP is current prices and real GDP takes prices changes into account.
If Government wishes to increase the level of real GDP it might reduce?
Taxes
