Retail and wholesale trade industries led the increase in private inventory investment. The largest contributor to retail was inventory investment by automobile dealers. Increases in both products and services contributed to the increase in exports. Consumer products, industrial supplies and materials, and foods, feeds, and beverages were the biggest contributions to the growth in goods […]
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Inflation is defined as an increase in the average price level of goods and services that results in a decrease in the value of money in a given economy. India’s two main inflation measures are the wholesale price index and the consumer price index. In India, the wholesale price index is used as the key
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The following were the outcomes by year: In 2008, President Bush’s final year in office, the country lost 3.55 million people. President Barack Obama’s first year in office resulted in a loss of $5.05 million. 8.6 million dollars were lost in all. How many Americans were laid off during the Great Recession of 2008? During
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On the other hand, as economies slow, so does demand, and commodity prices tend to fall. When investors feel a recession is on the way, they often sell commodities, lowering prices. However, because commodities are sold globally, a recession in the United States will not necessarily have a significant direct influence on commodity prices. What
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We use the compound interest formula to calculate the future cost: beginA &= Pleft(1+iright)n &= text times left(text +fracright)n &= text,textend &= text,textend Is there a compound interest in inflation? What compound interest brings, inflation takes away, as the saying goes. To put it another way, inflation is the inverse of compound interest, i.e. decompound
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The size of the labor force and the rate of productivity growth (output per hour of work), both of which are influenced by capital investment, determine potential GDP. That is, if more people enter the labor force, more capital is put into the economy, or the existing labor force and capital stock become more productive,
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Adjustments for changes in inflation are factored into real GDP. This means that when inflation is high, real GDP is lower than nominal GDP, and vice versa. Positive inflation, without a real GDP adjustment, dramatically inflates nominal GDP. What causes real GDP to rise? A rise in aggregate demand drives economic growth in the short
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The final distinction is in how the two metrics combine the various prices in the economy. The CPI or RPI gives set weights to different goods’ prices, whereas the GDP deflator gives fluctuating weights. To put it another way, the CPI or RPI is calculated using a fixed basket of products, but the GDP deflator
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GDP is a measure of the size and health of our economy as a whole. GDP is the total market value (gross) of all (domestic) goods and services produced in a particular year in the United States. GDP tells us whether the economy is expanding by creating more goods and services or declining by producing
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Now we can answer the question we posed earlier: how much did real GDP increase in the United States between 1960 and 2010 based on nominal GDP? To determine how much production has increased, we must subtract the effects of rising prices on nominal GDP, leaving just real GDP, or the growth in the quantity
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