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When there is a deflation in an economy (with the growth is still positive.) This is due to the fact that the value of money increase during a deflation (as opposed to inflation.) However, growth during this period is very difficult since deflation is characterized largely by deffered consumption and investments.

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Adolfo Adams

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2y ago

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When will the real GDP be higher than norminal GDP?

When there is a deflation in an economy (with the growth is still positive.) This is due to the fact that the value of money increase during a deflation (as opposed to inflation.) However, growth during this period is very difficult since deflation is characterized largely by deffered consumption and investments.


Should the real GDP rate of growth be higher than the nominal GDP growth?

no


Why has the nominal GDP increased faster than real GDP in the US over time?

The real GDP is influenced by inflation.


Why do economists use real GDP rather than nominal GDP to measure growth?

Real GDP reflects output more accurately than nominal GDP by using constant prices.


When nominal GDP is less than real GDP is this inflation or deflation?

deflation


Why is real GDP higher than current GDP in 1960?

I never thot tht i could be writing on wiki one day anyways i dnt knw the answer to im actually looking for the answer


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


Can real GDP rise as per-capita real GDP falls?

It can if your population increases faster than your GDP. Imagine if you have a 6% growth in GDP but a 10% growth in population => a reduction of 4% in GDP per capita.


US GDP is higher than Mexico?

Yes, by a lot:Mexico GDP: USD$1.56 trillionUS GDP: USD$14.26 trillion (more than 9 times the size of Mexico's GDP).


Why debt is higher than budget in GDP?

Because more is spent than there actually is.


Can Real GDP rise at the same time the unemployment rate rises?

as long as a different sector of the economy contributes to GDP by more than was lost from unemployment, real GDP will rise, if only marginally.