The percentage change in real GDP per capita between two consecutive years is used to compute the annual growth rate of real GDP per capita. GDP at constant prices is divided by the population of a country or area to get real GDP per capita. To make calculating country growth rates and aggregating country data […]
How To Calculate The Annual Growth Rate Of Real GDP? Read More »
For instance, if prices in an economy have risen by 1% since the base year, the deflated number is 1.01. If nominal GDP is $1 million, real GDP equals $1,000,000 divided by 1.01, or $990,099. How is real GDP calculated using nominal GDP and a price index? Multiplying by 100 produces a beautiful round value,
How To Get Real GDP From Nominal GDP? Read More »
In India, two key indices, the WPI (Wholesale Price Index) and the CPI (Consumer Price Index), are used to assess wholesale and retail price fluctuations, respectively. The CPI measures the price differential between goods and services purchased by Indian consumers, such as food, medical care, education, and gadgets. The WPI, on the other hand, captures
How Is Inflation Calculated In India? Read More »
Some argue that the shadow economy has a negative impact on GDP growth. They argue that reducing the shadow economy will raise tax revenues, causing an increase in government spending, particularly on infrastructure and services that promote production expansion, and hence a rise in the overall rate of economic growth. What impact does the underground
How Does The Shadow Economy Affect GDP In Different Countries? Read More »
To profit from a price movement, a futures spread requires taking two bets with separate expiration dates at the same time. Each side of the unit trade is considered a leg of the unit trade, which is exchanged simultaneously. Are there futures spreads? Futures Spreads: An Overview Spreading, a transaction in which you buy one
How To Trade Futures Spreads? Read More »
“While cash isn’t a growth asset, it will typically stay up with inflation in nominal terms if inflation is accompanied by rising short-term interest rates,” she continues. CFP and founder of Dare to Dream Financial Planning Anna N’Jie-Konte agrees. With the epidemic demonstrating how volatile the economy can be, N’Jie-Konte advises maintaining some money in
Where To Put Money Inflation? Read More »
When demand for goods and services exceeds output owing to factors such as greater total employment, increased trade activities, or more government spending, an inflationary gap occurs. When real GDP surpasses potential GDP, what happens? If real GDP exceeds potential GDP (i.e., the output gap is positive), the economy is generating more than it can
Can Actual GDP Exceed Potential GDP? Read More »
Chairman Jerome Powell said Tuesday that the Federal Reserve has a different understanding of the term “transitory inflation” than most Americans, suggesting that the term be “retired.” Powell and Treasury Secretary Janet Yellen spoke before the Senate Banking, Housing, and Urban Affairs Committee on Tuesday, the first of two days of evidence on the Coronavirus
What Does Inflation Is Not Transitory Mean? Read More »
The Consumer Price Index (CPI) tracks the average change in prices for a basket of goods and services over time. The CPI figures encompass a wide range of people with varying incomes, including pensioners, but excludes specific groups, such as mental hospital patients. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
What Is Consumer Price Index Inflation? Read More »
The debt-to-GDP ratio is the proportion of a country’s total debt to its total GDP (GDP). The debt-to-GDP ratio can also be thought of as the number of years it would take to repay debt if GDP were used as a measure of payback. The greater the debt-to-GDP ratio, the less likely the country is
What Happens When National Debt Exceeds GDP? Read More »
