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Why do you have to take out inflation when figuring Real GDP growth rates?
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How do interest rates and inflation affect real estate in south Africa?
explain how do intrest rates and inflation affect the real estate
Which economic indicator would be most useful of figuring?
Real unemployment, including those that have exhausted benefits, and real inflation, including fuel and food.
How would inflation be different if real income growth were higher Explain?
it will not change the rate
According to the quantity theory of money persistent inflation can only be caused by?
money supply growth that exceeds real GDP growth
What do economists call the percentage change in real GDP from one year to the next?
Growth rate, adjusted for inflation.
How do interest rates and inflation affect real estate in south Africa?
explain how do intrest rates and inflation affect the real estate
Which of the following is characteristic of a "good" economy a. unemployment of about 8% b. inflation of about 5% annually c. real GDP growth of about 4% annually d. tax rates of about 80%?
c. real GDP growth of about 4% annually
Which economic indicator would be most useful of figuring?
Real unemployment, including those that have exhausted benefits, and real inflation, including fuel and food.
How would inflation be different if real income growth were higher Explain?
it will not change the rate
When you are earning interest is it better to have high or low rates?
High rates.However, high interest rates are usually a consequence of high inflation rates and so what matters is not the interest rate but the real interest rate which is the nominal interest rate relative to the inflation rate.Thus a 3% interest rate when inflation is 1% is better that a 5% interest rate when inflation is 4%.
In 1960 the inflation rate was about 5.1. If you invested in a savings account with an annual interest rate of 4.9 what was the real growth rate of this investment?
A real "growth" of -0.0019%, approx.
According to the quantity theory of money persistent inflation can only be caused by?
money supply growth that exceeds real GDP growth
What do economists call the percentage change in real GDP from one year to the next?
Growth rate, adjusted for inflation.
Real GDP?
a measurement of economic output minus the effects of inflation or deflation, gives a more realistic assessment of growth
What does a lower interest rate mean for savers?
It means that they are getting less money for deferring expenditure and saving instead. However, it is not the low nominal interest rates which matter but what the "real" interest rates are. This is the difference between the nominal interest rate and the rate of inflation. An interest rate of 2% when inflation is 0% is good news for savers but an inflation rate even as high as 10% is bad news if inflation is higher than 10%.
Matthew made an investment with an 8 annual yield. However the real growth rate of his investment was only 5. What was the inflation rate?
It was 2.86%.
What are the effects of inflation on real domestic product?
What are the effects of inflation on real domestic output?
