EBK MACROECONOMICS
5th Edition
ISBN: 8220106773925
Author: KRUGMAN
Publisher: MAC HIGHER
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Chapter 7, Problem 12P
To determine
Concept Introduction:
The formula to calculate the value of GDP is,
Here,
- C is consumption spending.
- I is investment spending.
- G is government purchases.
- X is export.
- M is import.
GDP Deflator: It is one of the tools that help in measurement of
The formula to calculate GDP Deflator is,
Inflation: When the aggregate price level in an economy accelerates continuously for a span of time then it is referred to be inflation.
The formula to calculate inflation is,
Here,
- n is the present year.
is the previous year.
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