Economic Indicators Questions and Answers 100% Solved
Economic Indicators Questions and Answers 100% Solved Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year, the dollar growth in imports is greater than the dollar growth in domestic consumption. Assuming nothing else has changed, what happened to GDP? ️️It went down. As imports act as a drag on GDP, the larger growth in imports offsets the growth in consumption, thereby causing GDP to decline. In 2015, an accounting gimmick gave Ireland a 26% growth rate in GDP. What does this event reflect about the nature of GDP? ️️If the measurement of economic activity evolves, GDP can change. Governments from time to time change the scope of and criteria for GDP measurement, as we saw with Nigeria and Italy.
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- Subido en
- 10 de mayo de 2024
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