Real and nominal measures, Managerial Economics

Real and nominal measures

Output, Expenditure and Income can be valued at current market price in which case we speak, for example, of money or Nominal NNP, or NNP valued at current prices.  Changes from one year to another are then a compound of changes in physical quantities and prices.  Output, Expenditure and Income can also be valued at the prices ruling in some base year.  In this case, each year's quantity is priced at its base-year prices and then summed.  We then speak, for example, of GDP at constant prices, or REAL GDP.  Changes in constant-price GDP give a measure of real or quantity changes in total output.

Posted Date: 11/28/2012 6:43:08 AM | Location : United States







Related Discussions:- Real and nominal measures, Assignment Help, Ask Question on Real and nominal measures, Get Answer, Expert's Help, Real and nominal measures Discussions

Write discussion on Real and nominal measures
Your posts are moderated
Related Questions
INTERNATIONAL FINANCIAL INSTITUTIONS In July 1944, a conference took place at Bretton Woods in New Hampshire to try to establish the pattern of post-war international monetary

gap between economic theory and business practice

Why do the managers in marris model maximise their satisfaction by choosing a higher growth rate and a lower valuation ratio when compared to the profit maximisation

Assumptions of Monopolistic Competition Monopolistic competition as the name implies, combines features from both perfect competition and monopoly.  It has the following featu

Define the shift in demand curve To put it differently, demand for a commodity means entire demand schedule that demonstrates the varying amounts of goods purchased at alternat

What is the role of scarcity in management decisions-making

Define concept of Managerial decision-making Managerial decision-making draws on economic concepts as well as techniques and tools of analysis provided by decision sciences. T

What is Demand theory Demand theory demonstrates the relationship between demand for services andgoods. Demand theory is the building block of demand curve- a curve which estab

Explaination of the Marris Model

How does economic theory contribute to managerial decisions?