An inexperienced researcher wants to examine the average standard of living in two countries. In order to do so, he compares GDP in those two countries. This comparison will not lead to an accurate measure of the countries’ average standards of living because of differences in: price levels and population. population and unemployment. inflation and unemployment. price levels and interest rates.
An inexperienced researcher wants to examine the average standard of living in two countries. In order to do so, he compares GDP in those two countries. This comparison will not lead to an accurate measure of the countries’ average standards of living because of differences in:
-
price levels and population. -
population and
unemployment . -
inflation and unemployment.
-
price levels and interest rates.
The Gross domestic product(GDP) refers to the market value of all final commodities(goods and services) produced inside the economy during a particular time period usually year or quarter. When the value of GDP is calculated at the current market prices then it is known as the nominal GDP and when the value of GDP is calculated at some base year prices then it is calculated as the real GDP. Real GDP is also known as the inflation-adjusted measure of GDP.
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