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
NATIONAL INCOME AND STANDARDS OF LIVING Standard of living refers to the quantity of goods and services enjoyed by a person. These goods may be provided publicly, such as in t

cvp analysis

Q. Show the method of production? A process or method of production is a combination of inputs essential for the production of output. A method of production is technically eff

Theories associated with different market structures A firms profit maximising output decisions take into account the market structure under that they operate. There are 4 type

The production function of the personal computers for DISK Company is given by Q = 10 KL where Q is the number of computers produced per day, K s the hours of machine time,

Two firms are engaged in Bertrand competition. Both firms have a stable marginal cost of €7. Presently, every firm is allocated half the market. There are 10,000 people in the popu

The significance of behavioural approach is difficult to assess. It provides useful insights into some aspects of business behaviour. March and Cyert have claimed considerable shor

explain critically growth maximisation model of morris ?

Compare the price elasticity at two parallel demand curves at a given price. This has been explained in Fig above where two demand curves AB and CD are given that are parallel to e

SHORT RUN OUTPUT AND PRICE In monopolistic competition, it's the product differentiation that permits its price without losing sales.  Due to brand loyalty consumers will c