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Why has the nominal GDP increased faster than real GDP in the US over time?
The real GDP is influenced by inflation.
What is nominal price and real price?
Real price is in a mud nominal price is in your FACE
Why do economist say that real GDP should be used to measure growth in an economy and not nominal GDP?
Growth in real GDP is the only true indicator of weather or not an economy is growing.
Can a persons money wage decrease at the same time their real wage increases?
Yes, a person's money wage can decrease while their real wage increases if the rate of inflation decreases faster than the reduction in their nominal wage. For example, if a worker's nominal wage drops by 2% but the inflation rate falls by 5%, the purchasing power of their earnings—real wage—can increase despite the nominal wage decrease. This situation highlights the distinction between nominal and real wages, where real wages reflect the buying power of income adjusted for inflation.
How does the real interest rate relate to the nominal interest rate?
A real interest rate and a nominal interest rate are quite similar. The only real difference between the two interest rates are that a nominal interest rate include the cost of inflation where as the real interest rate does not.
Why has the nominal GDP increased faster than real GDP in the US over time?
The real GDP is influenced by inflation.
What is nominal price and real price?
Real price is in a mud nominal price is in your FACE
Why do economist say that real GDP should be used to measure growth in an economy and not nominal GDP?
Growth in real GDP is the only true indicator of weather or not an economy is growing.
Liabilities is real accounts or nominal accounts?
nominal account.
Can a persons money wage decrease at the same time their real wage increases?
Yes, a person's money wage can decrease while their real wage increases if the rate of inflation decreases faster than the reduction in their nominal wage. For example, if a worker's nominal wage drops by 2% but the inflation rate falls by 5%, the purchasing power of their earnings—real wage—can increase despite the nominal wage decrease. This situation highlights the distinction between nominal and real wages, where real wages reflect the buying power of income adjusted for inflation.
Is depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Is accumulated depreciation real or nominal account?
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
Is inventory a nominal account?
real
Is suspense account a nominal account?
Not necessarily. It can be of any type. Real, Personal or Nominal.
What is the difference nominal cash flow and real cash flow?
Difference between real and nominal cash flow is that nominal cash flows uses the inflation information as well for calculation of nominal cash flow of future while real cash flow don't use that information for calculation.
Is Sales Account nominal or real account?
real accounts
How does the real interest rate relate to the nominal interest rate?
A real interest rate and a nominal interest rate are quite similar. The only real difference between the two interest rates are that a nominal interest rate include the cost of inflation where as the real interest rate does not.
