Explain why the growth rate of GDP in current prices does not provide information about how quickly

Question:

Explain why the growth rate of GDP in current prices does not provide information about how quickly the economy is really growing.

China’s real GDP increased 6.9 percent in the first quarter of 2017 from a year earlier. Investment grew by 9.2 percent and retail sales by 10.9 percent. In current prices, GDP increased by 11.8 percent from a year earlier.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

See More Books

Question Posted: Jan 27, 2024 10:02 PM

See More Questions

Three elements of robbery are? theft with a gun, by a person, against another person. the intentional theft, of personal property, from another against their will O the wrongful taking of another...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
In Chapter 12 (p. 432), we described a study reporting that college students who are on Facebook (or have it running in the background) while studying had lower grades than students who did not use...
The cost of producing x ounces of gold from a new gold mine C = f(x) is dollars. (a) What is the meaning of the derivative f (x)? What are its units? (b) What does the statement f (800) = 17 mean?...
Next, you decide to build a shelter for the evening. In selecting a site, what do you not have to consider? a. It must contain material to make the type of shelter you need. b. It must be free from...
Based on the following pedigree for a trait determined by a single gene (affected individuals are shown as filled symbols), state whether it would be possible for the trait to be inherited in each of...
Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A...
2. What is the computational complexity of the following function Mystery1? int Mystery1(int n) { int sum = 0; for (int i=0; i
The United Nations Human Development Index (HDI) is based on GDP per person, life expectancy at birth, and indicators of the quality and quantity of education. a. Explain why the HDI might be better...
Explain how Chinas real GDP can grow at a 6.9 percent rate when consumption and investment grew faster than 6.9 percent. Chinas real GDP increased 6.9 percent in the first quarter of 2017 from a year...
Two identical conducting spheres are separated by a fixed center to- center distance of 35 cm and have different charges. Initially, the spheres attract each other with a force of 0.099 N. The...
What is the assumption behind the interest rate method?
What are external diseconomies?
Describe a goal matrix.
What is meant by capital value and what are the problems of the capital value method?
How can efficiency be defined and what different types of efficiency exist?
What is meant by the terms margin and turnover in ROI calculations?
What are the before image (BFIM) and after image (AFIM) of a data item? What is the difference between in-place updating and shadowing, with respect to their handling of BFIM and AFIM?
The Canadian price level is 106.3, the Japanese price level is 95.4, and the real exchange rate is 103.6 Japanese real GDP per unit of U.S. real GDP. What is the nominal exchange rate?
The Canadian dollar gained the most against the yen in 10 months as the Group of Seven nations, including Canada, intervened in the foreign exchange markets to stabilize the Japanese currency....
With the strengthening of the yen against other currencies in 2010, Japans central bank did not take any action. A leading Japanese politician has called on the central bank to take actions to weaken...
Listening to New Ideas. A useful skill for listening to new ideas is PIPN, a technique that derives from Carl Rogerss (1970) emphasis on paraphrasing as a means for ensuring understanding and Edward...
Empowering Others. For each situation below, indicate what you might say to help empower the other person(s), using such strategies as (a)raising the other persons self-esteem; (b)listening actively...
Developing Criteria. What type of criteria would an advertising agency use in evaluating a campaign to sell soap? A university, in evaluating a new multicultural curriculum? Parents, in evaluating a...

Explain why the growth rate of GDP in current prices does not provide information about how quickly

Question:

Step by Step Answer:

Economics

Students also viewed these Business questions