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Since GDP is the total $ amount of financial transactions (buying and selling)... if you increase the number of transactions and/or the $ amount per transaction, GDP would increase.
if the # of transactions in one year was 1,000,000,000 and the average $ amount per transaction was $1,000, GDP would be $1,000,000,000,000 or $1T.
If the next year the # of transactions was 1,100,000,000 and the average $ amount per transaction was $1,000, GDP would be $1,100,000,000,000 or $1.1T or a 10% increase in GDP.
I don't know how many transactions we had in the past year or how much the average $ amount was per transaction, but since GDP was about $14.5 trillion...it was a lot but not enough to grow GDP per capita to make people (buyers) and businesses confident enough to spend their cash or take on additional debt.
Wiki User
∙ 13y ago
Wiki User
∙ 9y agoGross domestic product is the total of money and production in a country; it rises by exporting more goods, producting more goods, and making more money,
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Per capita GDP will rise if GDP?
if GDP grows faster than the population of a country, the per capita GDP will rise
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.
What is it called when GDP figures decline but prices rise?
stagflation
What is a period of economic growth as measured by a rise in real GDP called?
An expansion
What industry has helped Greeks GDP rise steadily in recent years?
Farming.
Per capita GDP will rise if GDP?
if GDP grows faster than the population of a country, the per capita GDP will rise
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.
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.
What is it called when GDP figures decline but prices rise?
stagflation
A nations standard of living will rise if what happens?
if real GDP rise faster than the number of people employed
What is a period of economic growth as measured by a rise in real GDP called?
An expansion
What was one reason for the huge rise in japan GDP from 1950 to 1970?
slaves
What industry has helped Greeks GDP rise steadily in recent years?
Farming.
When the price level and the money wage rate rise by the same percentage what happens to unemployment?
the outcoem will rise as well but in the GDP will stay at the same level
Per capita GDP will definitely rise if?
The rate of population growth is greater than the rate of population growth.
Why is GDP alone not a perfect measure of development?
GDP is not the perfect measure of development because in many cases the GDP of a country may be increasing even though development is not. This can be due to inflation. As the prices of goods rise, GDP will also rise however, this does not mean that production or the standard of living is also increasing. This is known as Nominal GDP. To get a better understanding of whether a country is developing, one must consider the Real GDP of that country. Real GDP involves using base prices from a specified year in the past to calculate the current GDP. This allows us to overcome inflation and compare the GDP of a country for two different years to find out if production has actually increased or not. Ofcourse, there are many other factors that go into whether a country is experiencing an increase in the standard of living such as overall happiness of the people in the country.
In the long run potential growth in the economy and a rise in real GDP per capita might occur from all except?
growth in population
