Trade as percentage of GDP is wrong A measure of the importance of trade is:- A. Trade as a percentage of employment rate.- B. The dollar value of trade adjusted for inflation.- C. The real value of trade.- D. Trade as percentage of GDP.

GDP It is a monetary indicator of the market worth of each country's manufactured or sold (not…

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ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Trade as percentage of GDP is wrong

A measure of the importance of trade is:

- A. Trade as a percentage of employment rate.
- B. The dollar value of trade adjusted for inflation.
- C. The real value of trade.
- D. Trade as percentage of GDP.

Expert Solution

Step 1

GDP

It is a monetary indicator of the market worth of each country's manufactured or sold (not resold) final products and services over a certain time period.
This measurement is often changed before it can be trusted as an indicator because of how complicated and arbitrary it is.
However, GDP (nominal) per capita does not account for variations in the cost of living and the rate of inflation of the various nations.
As a result, using such a foundation of GDP per capita at buying power parity (PPP) could be more beneficial.
when comparing livelihoods between countries, whereas nominal GDP is more useful when comparing economic systems on the global market.

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