because it helps to see where the economy is heading
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economists prefer to compare real gdp figures for different years instead of comparing nominal gdp figures. why?
GDP Deflator = Nominal GDP/Real GDP x 100.
stagflation
Both fiscal and monetary policy can affect real GDP, due to time-lag in wage and price adjustments. In general, however, fiscal policy has a much more direct effect on real GDP.
Expansionary fiscal policy is so named because it is designed to expand real GDP.
economists prefer to compare real gdp figures for different years instead of comparing nominal gdp figures. why?
GDP Deflator = Nominal GDP/Real GDP x 100.
stagflation
Both fiscal and monetary policy can affect real GDP, due to time-lag in wage and price adjustments. In general, however, fiscal policy has a much more direct effect on real GDP.
Total GDP of Bosnia is $31.366 billion, and per capita is $8,063. Those are estimated figures from 2011.
There are no figures for 2010 as yet. But based on 2009 & 2008 GDP per capita PPP figures from the CIA World Factbook, which = $39,900 in both years, and 2007 GDP per capita PPP figures, which = $39,500, 2010 figures should be in the area of $39,500-$39,900.
Expansionary fiscal policy is so named because it is designed to expand real GDP.
GDP output
Gross domestic product (GDP) is a broad measure of the nation's economic activity. For small businesses, which are often sensitive to the economic climate, GDP can be an important measure of current business prospects. Because GDP measures overall economic output, small businesses may carefully watch GDP figures to determine how the economy is faring and how their own results compare with the results of other businesses.
With a GDP (PPP) of $14,720,000,000,000 USD, the United States is the largest economy. The US is followed by China (#2) with a GDP of $ 9,872,000,000,000; Japan (#3) with a GDP of $ 4,338,000,000,000; and India (#4) with a GDP of $4,046,000,000,000; and Germany with a GDP of $2,951,000,000,000. All figures from CIA World Factbook 2010 - GDP estimate expressed as PPP
- data is not very timely- it is only released quarterly - Revisions can change historical figures measurably (the difference between 3% and 3.5% GDP growth is a big one in terms of monetary policy)
GDP or gross domestic product is not directly related to the exchange rate. One rate theories are used to accurately report GDP. Universal rates apply in the reporting figures used.