how is it possible for nominal GDP to rise but real GDP to fall from one year to the next?

Answers

Answer 1

Yes, the given statement can be marked as true as it would indicate a larger rise in prices relative to a decrease in output.

Why would Nominal GDP increase but real GDP decrease?

When nominal GDP increases and it is higher than real GDP, then it shows that inflation is occurring but when real GDP is higher than nominal, then it means deflation is occurring.

In an economy with a high inflation, it will experience an increase in nominal GDP no matter if the real amount of goods and services produced decreases.

The GDP deflator measures the the overall change in prices in an economy, by using the ratio between real and nominal GDP.

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Related Questions

Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon, Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per year. In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and incurred another $15,000 in expenses on equipment and hairdressing material. Based on this information, what is the amount of her explicit costs

Answers

The amount of her explicit costs is ​$45,500.

Which costs are explicit?

Out-of-pocket expenses are charges that are actually made. Explicit costs include salaries that a company pays to its staff and office rent. Implicit costs are less obvious but no less significant. They stand for the opportunity cost of utilising resources the company already owns.

What are some explicit cost examples?

Explicit costs have precise cash values that are carried over to the income statement. Wages, leasing payments, utilities, raw materials, and other direct costs are a few examples of explicit costs.

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What type of credit involves a set number of payments at a set dollar amount for a fixed period of time?.

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Installment credit involves a set number of payments at a set dollar amount for a fixed period of time.

What is installment credit?

Installment credit is regarded as a method of credit where the repayment of the amount along with interest is made at regular intervals, and the periodic payments are also fixed. It is also known as EMI.

Hence, the significance of installment credit is aforementioned.

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Sutton is a partner of RST Partnership. RST distributed $3,000 cash and a building with an adjusted basis of $10,000 and a fair market value of $50,000 to Sutton. Before the distributions, Sutton's basis in the partnership was $90,000. What amount of these distributions is taxable to Sutton in the current year

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Based on the basis of the distributions and Sutton's basis in the partnership, the amount of taxable distributions to Sutton is $0.

How much of the distributions can be taxed?

The distributions can only be taxed if they exceed Sutton's basis in the partnership of $90,000.

As neither the cash distribution nor the building, have enough to surpass Sutton's basis, the taxable distributions will be $0.

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Four companies computed their days' sales in inventory as follows: Company A: 47.2 Company B: 36.5 Company C: 45.1 Company D: 39.4 Which company is the most efficient and effective in managing its inventory

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The most efficient and effective in managing its inventory is Company B.

Who is the most efficient?

The days' sales in inventory  is a financial ratio that measures the rate at which a firm is able to sell its inventory in a given year. The lower the ratio, the more efficient a firm is in selling its inventory.

Days' sales in inventory = number of days in a period / inventory turnover

Inventory turnover =  cost of goods sold / average inventory

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An instrument that give their holders the right to purchase a certain number of shares of the firm's common stock at a specified price over a certain period of time is called

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An instrument that gives its holders the right to purchase a certain number of shares of the firm's common stock at a specified price over a certain period of time is called stock purchase warrants.

What are stock purchase warrants?

Stock options are contracts that give the holder the freedom to purchase or sell a security at a certain price for a set period of time without being impacted by changes in the security's market price during that time.

A stock purchase warrant is another form of stock option.

An owner of a stock purchase warrant has the right to acquire shares of common stock at a given price (the exercise price of the warrant).

In order to make senior securities (preferred stocks and bonds) more marketable, warrants are frequently issued alongside them.

They may also be given out directly as part of the payment made to underwriters of new issues and other company promoters.

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A company received a utility bill of $650 but did not pay it. Indicate the amount of increases and decreases in the accounting equation. (Decreases to account classifications should be entered as a negative.)

Answers

Based on the fact that the utility bill was received but not paid, the increases and decreases are:

Assets - $0Liabilities - +650Equity - (-650)

What is the effect on the accounting equation?

Liabilities will increase by the utility bill of $650 because the company owes this amount.

Equity will decrease by $650 because this expense will come out of revenue. The total assets will remain unchanged as a result of equity ad liabilities canceling each other out.

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If government spending increases or personal income taxes decrease, what are the likely effects on output, price level, and interest rates?

Price Level / Output / Interest Rates


1) Increase / Increase / Decrease

2) Increase / Increase / Increase

3) Decrease / Increase / Decrease

4) Decrease / Decrease / Decrease

5) Decrease / Decrease / Increase

Answers

When there is an increase in government spending, there will be an increase on the output, price level, and interest rates

What is a government spending?

This refers to the funds injected to the public sector on the acquisition of services such as education, healthcare, social protection, defense etc.

Most time, the effect of an an increase in government spending leads to an increase on the output, price level, and interest rates as it is a method of stimulate demand.

Therefore, the Option A is correct.

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Efficiency is a measure of Multiple Choice the appropriateness of the goals that managers have selected for the organization to pursue. how productively resources are used to achieve a goal. the degree of novelty of innovation in products or production. how easily managers can alter the way they perform their activities to respond to actions of their competitors. the speed with which a manager responds to an unforeseen event in the organization.

Answers

Efficiency is a measure of B. how productively resources are used to achieve a goal.

What is Efficiency?

Efficiency measures the ratio of economic output to the total input of resources.

Mathematically, efficiency can be expressed as r = P/C, where:

P = the amount of useful outputC = the cost of resources consumedR = Efficiency.

Thus, Efficiency is a measure of B. how productively resources are used to achieve a goal.

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Explain how e business systems naturally have greater security risks than traditional business systems. the answer must be focused on person-based trust

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E-business systems naturally have greater security risks than traditional business systems because they lack a personal touch and are vulnerable to hackers.

Why E-Business is risky?Along with vulnerabilities connected to using third-party platforms, data privacy laws, internet security rules, and customer service concerns, these risks include the unauthorized sharing of data, fraud, malware, and other security lapses. E-commerce is lacking in a personal touch which is better than traditional. The product is not touchable or haptic. Therefore, it is challenging for customers to evaluate a product's quality. Risks associated with conducting business online frequently include suspicious activities and credit card data theft. This is not a problem in traditional ones.Anyone can make an online purchase using a stolen credit card, including hackers. Most often, disputes start when a customer's account has been charged for a product that never shows up.

Hence, E-business is riskier than the traditional business system.

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A characteristic of the production era is:

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A characteristic of the production era is that buyers of a particular goods and services accepts the nature of the goods even if unsuitable due to the level of its scarcity.

Concept of production era.

The forms of era that will have can be production or sales oriented.

The production era shows that buyers of a particular goods and services accepts the nature of the goods even if unsuitable due to the level of its scarcity.

For the sales era, the manufacturers tends to produce more goods depending on the response of the buyers to the product.

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Ryan and Carly are planning to enter into a limited partnership in which neither the general partners nor the limited partners have personal liability for the debts and obligations of the partnership. They agree that debts of the partnership are solely the responsibility of the partnership, not of the general or the limited partners. According to their agreement, Ryan and Carly are forming a ________.

Answers

According to their agreement, Ryan and Carly are forming a Limited Liability Partnership.

What is a limited liability partnership?

A limited liability partnership is a business structure that allows partners' liabilities to be limited to the amount they agreed to contribute to the partnership.

The purposes of establishing a partnership are:

Spreading the riskLeveraging individual skills and expertiseEstablishing a division of labor.

Thus, according to their agreement, Ryan and Carly are forming a Limited Liability Partnership.

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________ examine the data prepared by ________ and then make recommendations to top management regarding strategies for improving the firm

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Answer:

important difference between accounting and other business functions, such as marketing and management, is that

the recording, classifying summarizing and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions

Although accounting has several specific uses, the overall purpose of accounting can be summarized as

a major purpose of accounting is to help managers make well informed decisions. another is to report financial information about the firm to interested stakeholders, such as employees owners, creditors, suppliers, unions, community activists, investors and the goverment (for tax purposes)

Managers examine the date prepared by accountants and then make recommendations to top management regarding strategy.

What is Top level management?

Top level management refers to the strategic level which includes the board of the directors, managing directors and Chief executive officers.

Managers review the data generated by accountants and then offer to upper management various ways for the company's improvement.

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A natural barrier that faces Argentina when it sells beef to Siberia is: Group of answer choices custom regulations distance government controls exchange controls taxes

Answers

A natural barrier that faces Argentina when it sells beef to Siberia is distance.

Why distance is a barrier to trade?

Due to the fact that markets within countries are typically closer together than markets between countries, distance reduces international trade in comparison to domestic trade. Most overseas markets have higher transportation expenses than they do for domestic markets, frequently by a significant margin. Given that distance seems to restrict trade more than can be compensated for by transportation, it is possible that distance is also linked to greater non-transportation trade costs.

For example, the price of carrying the beef from Argentina to Siberia could make it too expensive even though farming beef there may be less expensive than raising beef in the freezing cold of Siberia. Thus, one of the inherent obstacles to international trading is distance.

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Using a price skimming strategy, Apple stakes out a price and then maintains and defends that price by significantly increasing the value of their products in future iterations. Apple gives priority to profits over market share, making people starve for the new upgraded product. Apple's price skimming strategy is most often used for a new product when _______. a. the supply of the product is greater than its demand b. customers are unwilling to spend a large amount of money on the product c. competition in the market is abundant d. the product is perceived by the target market as having unique advantages

Answers

(D) The product is perceived by the target market as having unique advantages.

What is a price skimming strategy?When offering a product or service for the first time, a company can use price skimming as a pricing strategy.  A company can profit from a higher price in the market and recoup its sunk costs more quickly by using this price skimming strategy and taking the excess profit before new competition emerges and drives down the market price.  Setting high initial pricing and gradually lowering them has been a fairly standard technique for managers in developing markets. The process of price skimming is sometimes referred to as riding the demand curve.

Therefore, apple's price skimming strategy is most often used for a new product when (D) The product is perceived by the target market as having unique advantages.

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An increase in a consumer's income Group of answer choices increases the slope of the consumer's budget line. has no effect on the slope of the consumer's budget line. decreases the slope of the consumer's budget line. has no effect on the consumer's budget line.

Answers

An increase in a consumer's income will increase the slope of the consumer's budget line.

What is a budget line?The budget line sometimes referred to as the budget restriction, displays every combination of two commodities that a client is able to afford at the current market pricing and within their specific income range.The budget line is a graphical representation of every combination of the two commodities that may be purchased using the given income and cost, with the price of each combination being equal to the customer's monetary earnings.It's critical to remember that the slope of the budget line corresponds to the cost-to-volume ratio of two commodities. The slope of the budgetary restriction is very significant.Increase in the slope of the budget line:A rise in income allows consumers to purchase more of both goods, which causes the budget line to shift outward, or to the right (slope increases).

Therefore, an increase in a consumer's income will increase the slope of the consumer's budget line.

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Willard works as a representative focused on the senior marketplace. What would be considered prohibited activity by willard?.

Answers

The act of Implying that only seniors can enroll in a Medicare Advantage plan when meeting with Mr. Hernandez would be considered a prohibited activity by Willard.

What is a prohibited activity?

This refers to those activities that are not permitted under code of conduct of an organization.

Hence, among other options, the act of Implying that only seniors can enroll in a Medicare Advantage plan when meeting with Mr. Hernandez would be considered a prohibited activity by Willard.

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The extent to which an organization uses fixed costs in its cost structure is measured by: Select one: a. contribution leverage. b. fixed cost leverage. c. efficiency leverage. d. financial leverage. e. operating leverage.

Answers

The correct option is E. Operating leverage occurs when an organization has a fixed cost the percentage change in profits due to changes in sales volume is greater than the percentage change in sales.

What causes Operating Leverage?

When the organization has fixed costs the percentage change in profits due to changes in sales volume is greater than the percentage change in sales.

Thus, to extent of operating leverage, the organization uses fixed costs in its cost structure.

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A company requires physical isolation of its amazon ec2 instances from the instances of other customers. which instance purchasing option meets this requirement?

Answers

The instance purchasing option that meets this requirement of physical isolation is Dedicated Hosts.

What are Dedicated Hosts?

A dedicated host is a kind of hosting service that tis internet based where by the client is the sole use of the hosting service.

Thus, it is right to indicate that The instance purchasing option that meets this requirement of physical isolation is Dedicated Hosts.

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Successful small business owners are: Group of answer choices not good sources for information on starting your own business because they generally do not understand failure. valuable sources for information since you can learn from their experiences. good but risky since their keen sense of sniffing-out something with potential will tempt them to steal your ideas. valuable sources of information, but you should proceed with caution because talking with someone who could eventually be your competitor may cross the line due to federal trade commission laws.

Answers

Successful small business owners are valuable sources for information since you can learn from their experiences.

What is a business?

It should be noted that a business entails the production of goods and services to the consumers.

In this case, the successful small business owners are valuable sources for information since you can learn from their experiences.

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What is the value of total (also called social or economic) surplus?

Answers

The values of economic surplus is computed by remove in the actual selling price from the market price and the price a consumer is willing to pay.

What is economic surplus?

Economic surplus occurs when both consumer and producers are both benefiting from surplus.

This period they are both happy and satisfied.

Therefore, It is computed by remove in the actual selling price from the market price and the price a consumer is willing to pay.

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the primary reason that governments tax economic activity is:

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The primary reason why the government taxes economic activities is to generate revenue in order to pay for services rendered t the citizens.

What is Tax?

Tax is a mandatory financial charge or levy imposed on taxpayers by a governmental organization in order to generate revenue to fund government spending.

Taxes are imposed on economic activities primarily to generate revenue for the government and fund government spending. Thes taxes are used to build infrastructures and pay workers.

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Those who oppose corporate social responsibility believe that Multiple choice question. businesses cannot succeed in societies that fail it is using investors' money in ways they did not intend benevolence is the highest virtue businesses who are socially responsible will earn more

Answers

Those who oppose corporate social responsibility believe that it is using investors' money in ways they did not intend. Thus the correct answer is B.

What is corporate social responsibility?

Corporate social responsibility is referred to as an initiative taken by an organization to protect environmental values and surroundings by eco-friendly and minimum risk strategy in business operations.

This activity focuses on minimum use of natural resources in the business operations and decisions making of the business.

These types of organizations practicing CSR will focus on strategies that do not create harm to the environment and encourage sustainable business practices to provide better experiences to stakeholders of the business.

Therefore, option B which is using investors' money in ways they did not intend is the appropriate answer.

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according to the international data corporation (idc), what is that crucial ability that will make cloud computing essential for businesses to succeed, sustain, and compete in today’s markets?

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According to the International Data Corporation (IDC), the crucial ability that will make cloud computing essential for businesses to succeed, sustain, and compete in today’s markets is D. Data-driven decisions.

What are data-driven decisions?

A data-driven decision is the use of facts, metrics, and data to guide strategic business decisions to align with organizational future goals, objectives, and current initiatives.

Data-driven decisions enable organizations to observe real data and gain predictive insights, enabling the organization to achieve efficiency and effectiveness in its operations.

Thus, according to the International Data Corporation (IDC), the crucial ability that will make cloud computing essential for businesses to succeed, sustain, and compete in today’s markets is D. Data-driven decisions.

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The first paragraph or part of a business letter is the
OA. introduction
OB. addresses
OC. supporting details
OD. conclusion
SUE

Answers

Answer:

introduction

Explanation:

I don't know how to explain

The airlines sold fewer tickets to business travelers during the "Great Recession" due to more companies using video conferencing software to save money. According to the five forces model, this type of threat is called the

Answers

According to the five forces model, this type of threat is called the threat of substitute products.

What are the five forces model?

The five forces model is used to analyse the competitiveness among firms in an industry. They are also referred to as the Porter's five forces.

One of the five forces is the threat of substitute products. If there are little or no substitutes for the goods produced by other companies, the greater the power the firms possesses.  Video conferencing is an alternative to physical meetings.

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Suppose you are the owner of a picture frame store and you wish to calculate how many pictures you must sell to cover your fixed and variable costs at a given price. Demand for pictures is strong, so the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). What is the quantity of picture frames you will need to sell to break even

Answers

Based on the selling price of the picture frames and the unit variable costs, the break-even point is 400 picture frames.

What is the breakeven point?

This can be found by the formula:

= Fixed costs / (Selling price - Variable costs)

Solving gives:

= 32,000 / (120 - 40)

= 32,000 / 80

= 400 picture frames

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the discount rate is the rate of interest charged on loans from ______ to _____.

Answers

The Federal Reserve discount rate is the rate of interest charged on loans from  the Federal Reserve to commercial banks.

What is discount rate?

The discount rate serves as the interest rate that is been  charged to commercial banks as well as other banks.

This is been charged as a result of the loans they took from the Federal Reserve Bank and this is been charged based on agreed interest rate and this can help to know present value of future cash flows.

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which is true of the influencers found among early adopters?

Answers

What is true about  the influencers found among early adopters is that  a. They are not focused on earning the respect of others.

Who are the influencers ?

Influencer can be regarded as those that are found in life that involve themselves in endorsements and product placement .

These people are found in different  organizations and have purported expert level of knowledge , however They are not focused on earning the respect of others.

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A financial analysis comparing the potential gains from an investment against the potential losses is known as_______________

Answers

A financial analysis comparing the potential gains from an investment against the potential losses is known as Risk or ROI

What is Return on Investment (ROI)

These is the amount of money generated from a business. Most financial analysis are analyzed by understanding the level of ROI generated by a business.

Most firm therefore compare their potential gains from an investment against the potential losses depending on the ROI and risk involved.

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If you are recording your own audio clips, what is the best advice about
including a joke in a clip?
A. Effective speakers rarely include jokes in presentations.
B. It can help increase audience members' interest.
C. Jokes are not appropriate in persuasive addresses.
D. Jokes are appropriate, but only if the topic is humor

Answers

Answer:

B

Explanation:

As long as the joke is good

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