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

Find the area of the shaded sector. thank you
How many people attended movies by 1930? A. 9 million per month B. 90 million per week C. 900,000 per week D. 900 million per month
Choose the correct verb for the blank and conjugate it into the correct form of the present tense. Yo _______ (saber/conocer) que tú quieres ______ (tocar/jugar
What event in Frederick Douglass's life did Douglass credit for eventually bringing him freedom? A. His chance to go to school B. The day he decided to be
what is the least common denominator of 7/x^2 7/5x explain
If two circles are concentric then their radii are congruent?
I've been looking in the study guide but can't find how to solve it
in this excerpt from act V of Shakespeare's Romeo and Juliet, Romeo encounters Paris when he enters Juliet’s grave. Paris challenges him to a duel, but Romeo pl
were the native americans allies with the british in the war of 1812?
If four standard coins are tossed find the probability of all four coins landing on tails