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.
GDP..
GDP can be increased in the short run by having a monetary policy of keeping interest rates as low as possible. Low rates allows increased borrowing in the corporate sector and thus it has funds to increase production and hopefully increase the size of GDP.
expansionary monetary policy increases money supply by lowering interest rates
The best measurement for comparing the standard of living between two countries is the GDP in conjunction with the economic growth. GDP stands for Gross Domestic product.
The GDP of Japan is $4.38 trillion ranking it #2 in the world behind the US (International Monetary Fund 2007).
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.
GDP..
The GDP of Japan is $4.38 trillion ranking it #2 in the world behind the US (International Monetary Fund 2007).
According to the International Monetary Fund, Costa Rica's GDP is: - Total: $48.663 billion - Per capita: $10.735
GDP can be increased in the short run by having a monetary policy of keeping interest rates as low as possible. Low rates allows increased borrowing in the corporate sector and thus it has funds to increase production and hopefully increase the size of GDP.
the raw measurement that leaves price increases in the estimate
The GDP of Poland is $422 billion (International Monetary Fund 2007 based on US Dollars). This ranks Poland's economy as the 22nd largest in the world.
The GDP of Canada is $1.43 trillion (International Monetary Fund 2007 based on US Dollars). This ranks Canada's economy as the 9th largest in the world.
expansionary monetary policy increases money supply by lowering interest rates
The best measurement for comparing the standard of living between two countries is the GDP in conjunction with the economic growth. GDP stands for Gross Domestic product.
The advantages of using GDP include the measurement of total domestic consumption. Total domestic investment expenditures and net exports are also clearly measured with the use of GDP.