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
Q. Define Profit maximisation theory? Profit maximisation theory defines that firms (corporations orcompanies) will establish factories where they see potential to achieve the

explain critically growth maximisation model of morris ?

diagram of production function with one varaible

State the Traditional demand theory So an over-simplified and the most commonly stated demand function is: Dx = f (PX) thatconnotes that demand for commodity X is the function

Meaning of Fiscal Policy In this general theory, Keynes used fiscal policy when referring to the influence of taxation on saving and government investment spending financed thr

Planned Economy Is a system where all major economic decisions are made by a government ministry or planning organisation. Here all questions about the allocation of resources

Problem: (a) Explain with the help of a diagram, the effect on a consumer's equilibrium, of an increase in the price of commodity X while the consumer's money income and price

what are the limitation of managerial economics and what is the solution of it?


In the national income analysis, investment refers to the value of than part of the aggregate output for any given time period which takes the form of construction of new structure