thethwarrior9773 thethwarrior9773
  • 23-07-2017
  • Business
contestada

If real gdp increases by 1 percent next year and the price level goes up by 3 percent, by how much will nominal gdp increase?

Respuesta :

W0lf93
W0lf93 W0lf93
  • 01-08-2017
Since real GDP goes up by 1% and price level goes up by 3%, nominal GDP must go up by 3%. This is because real GDP is measured based off a base year's prices, but nominal GDP is not encumbered by such a price basis. Since the price level goes up by 3% (and 3/1 is 3), then nominal GDP goes up by 3% as well since the real GDP level only goes up by 1%.
Answer Link

Otras preguntas

A square rug covers 79 square feet of floor. What is the approximate length of one side of the rug?
Which forces involve nonpolar molecules?
What roles did government play in early civilization
What is the relationship between the solution of an equation in two variables and its graph?
why do you think voting is a responsibility and not a duty
A group of freely interbreeding organisms constitute a : a. family b. genus c. species d. class
The 7-digit numbers 74A52B1 and 326AB4C are each multiples of 3. Which of the following could be the value C? A(1) B(2) C(3) D(5) E(8)
Find the value of n in each equation. Then name the property that is used in each step. 7 + 1.5 = n + 1.5
what is the lowest term of 8/12?
Which statement about DDT best shows how science has been impacted by society? A.DDT led to insect resistance. B.DDT was considered harmful and was replaced by