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The following is the information from the national income accounts for a hypothetical country:
GDP Rs. 6000.00
Gross Investment Rs. 800.00
Net Investment Rs. 200.00
Consumption Rs. 4000.00
Govt. purchases of goods & services Rs. 1100.00
Govt. Budget Surplus Rs. 30.00
What is a) NDP
b) Net exports
c) Govt. taxes minus transfers
d) Disposable personal income
e) Personal Saving.
#“Nominal GDP declined between 2008 and 2009, therefore the GDP deflator must also have declined.”
One problem in using exchange rate when comparing GDP per capital between countries is that is fluctuates a lot. A way of avoiding dependence on exchange rate is to use purchasing
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Ok... So if the price level is rising, this means that inflation is rising as well, so the value of the dollar in the US would decrease meaning that purchasing power decreases as
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