Question

Please answer all in microsft word

a.What are the four components of GDP?

c.What is the difference between durable goods and non-durable goods?

d.What are the differences between intermediate goods and final goods?

e.What are the differences between nominal variables and real variables?

Answer 1

A. The four component of GDP are:

1. Consumption expenditure

2. Government expenditure

3. Investment expendw

4. Net export

C.

The durable good is that good which do not perish in short time while non-durable good is that good which may perish in short run.

D.

The inter-mediate good is that good which is used for production of another goods and it is not used directly for consumption while a final good can be used for final consumption directly.

E.

The nominal variable is that variable which changes with the changes in the price while a real variable is adjusted with the price changes it changes with the changes in the quantity of goods and services.