Real and nominal measures, Managerial Economics

Assignment Help:

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.


Related Discussions:- Real and nominal measures

Corporate profit maximization , Difference between corporate profit maximiz...

Difference between corporate profit maximization and maximization of shareholder wealth? Ans) Sure, profit maximization relates to profits *only* while shareholder wealth also i

Governmental functions, a)  The most well-organized combination of resource...

a)  The most well-organized combination of resources which can be used to make a given level of output is that which:   b)  The enactment of a guaranteed yearly income for al

Concept of central bank, Concept of Central bank M.H. De Kock concept o...

Concept of Central bank M.H. De Kock concept of central bank is superior to that of others as it is more inclusive. His long definition of central bank includes many of the imp

What is normative economics, What is Normative economics It is concerne...

What is Normative economics It is concerned with varied corrective measures that a management undertakes under lots of circumstances. It deals with goal determination, goal dev

Determine the scope of managerial economics, Determine The scope of manager...

Determine The scope of managerial economics The scope of managerial economics involves following subjects: 1.  Theory of demand 2.  Theory of production 3.  Theory of

Capital recovery factor, The owner of a patent has a contract with a cooper...

The owner of a patent has a contract with a cooperation that gives it right to use the patent. The cooperation will pay the patent owner $2500 yearly for the next 5 years, $3000 fo

Average propensity to save, Average Propensity to save The Average Pro...

Average Propensity to save The Average Propensity to Save [APS] is defined as the fraction of aggregate national income which is devoted to savings.  Thus if S denotes savin

2 questions., Question 1: Martha National County Club is a golf club in an ...

Question 1: Martha National County Club is a golf club in an isolated wealthy community and accepts only females as members. There are 1,000 identical female members of the club an

Caselet, plot the demand schedule and draw the demand curve for the data gi...

plot the demand schedule and draw the demand curve for the data given for marijuana in the case above

Illustrate about demand theory, Illustrate about Demand theory Demand t...

Illustrate about Demand theory Demand theory is one of the core theories of consumer behaviour andmicroeconomics. It attempts at answering questions regarding the magnitude of

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd