Explain why the GDP is higher this year than last year.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 7, Problem 1QP

To determine

Explain why the GDP is higher this year than last year.

Expert Solution & Answer

Explanation of Solution

In this case, the statement does not refer to the real GDP because it refers to the nominal GDP. In general, increase in nominal GDP was due to higher price. If the real GDP increases, then the countries’ well-being will decrease, bad associated with the increased production of goods and services. Therefore, if the population grows faster than GDP, then the country’s per capita GDP will decrease in an economy.

Economics Concept Introduction

GDP (Gross Domestic Product): GDP refers to the market value of all final goods and services produced in an economy during an accounting year.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Why is it desirable for a country to have a large GDP?

Why do you think most western countries GDP has not grown as fast as China's GDP over the last 10 years? If you were in charge of trying to make a country like Spain's economy grow faster what would you do?

In 1980 Denmark had a GDP of $70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in U.S. dollars) s and a population of 5.3 million. By what percentage did Denmark’s GDP per capita rise between 1980 and 2000?

Answer 2

Question

Chapter 7, Problem 1QP

To determine

Explain why the GDP is higher this year than last year.

Expert Solution & Answer

Explanation of Solution

In this case, the statement does not refer to the real GDP because it refers to the nominal GDP. In general, increase in nominal GDP was due to higher price. If the real GDP increases, then the countries’ well-being will decrease, bad associated with the increased production of goods and services. Therefore, if the population grows faster than GDP, then the country’s per capita GDP will decrease in an economy.

Economics Concept Introduction

GDP (Gross Domestic Product): GDP refers to the market value of all final goods and services produced in an economy during an accounting year.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 1QP

To determine

Explain why the GDP is higher this year than last year.

Expert Solution & Answer

Explanation of Solution

In this case, the statement does not refer to the real GDP because it refers to the nominal GDP. In general, increase in nominal GDP was due to higher price. If the real GDP increases, then the countries’ well-being will decrease, bad associated with the increased production of goods and services. Therefore, if the population grows faster than GDP, then the country’s per capita GDP will decrease in an economy.

Economics Concept Introduction

GDP (Gross Domestic Product): GDP refers to the market value of all final goods and services produced in an economy during an accounting year.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 1QP

To determine

Explain why the GDP is higher this year than last year.

Expert Solution & Answer

Explanation of Solution

In this case, the statement does not refer to the real GDP because it refers to the nominal GDP. In general, increase in nominal GDP was due to higher price. If the real GDP increases, then the countries’ well-being will decrease, bad associated with the increased production of goods and services. Therefore, if the population grows faster than GDP, then the country’s per capita GDP will decrease in an economy.

Economics Concept Introduction

GDP (Gross Domestic Product): GDP refers to the market value of all final goods and services produced in an economy during an accounting year.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 1QP

To determine

Explain why the GDP is higher this year than last year.

Expert Solution & Answer

Explanation of Solution

In this case, the statement does not refer to the real GDP because it refers to the nominal GDP. In general, increase in nominal GDP was due to higher price. If the real GDP increases, then the countries’ well-being will decrease, bad associated with the increased production of goods and services. Therefore, if the population grows faster than GDP, then the country’s per capita GDP will decrease in an economy.

Economics Concept Introduction

GDP (Gross Domestic Product): GDP refers to the market value of all final goods and services produced in an economy during an accounting year.

Answer 6

Chapter 7, Problem 1QP

To determine

Explain why the GDP is higher this year than last year.

Expert Solution & Answer

Explanation of Solution

In this case, the statement does not refer to the real GDP because it refers to the nominal GDP. In general, increase in nominal GDP was due to higher price. If the real GDP increases, then the countries’ well-being will decrease, bad associated with the increased production of goods and services. Therefore, if the population grows faster than GDP, then the country’s per capita GDP will decrease in an economy.

Economics Concept Introduction

GDP (Gross Domestic Product): GDP refers to the market value of all final goods and services produced in an economy during an accounting year.

Answer 7

Chapter 7, Problem 1QP

To determine

Explain why the GDP is higher this year than last year.

Answer 8

Expert Solution & Answer

Explanation of Solution

In this case, the statement does not refer to the real GDP because it refers to the nominal GDP. In general, increase in nominal GDP was due to higher price. If the real GDP increases, then the countries’ well-being will decrease, bad associated with the increased production of goods and services. Therefore, if the population grows faster than GDP, then the country’s per capita GDP will decrease in an economy.