Question

Please answer all in mircrosoft word

f.What is the relationship of the GDP Deflator to real GDP?

g.What is the difference between economic development and economic growth?

h.What is the significance of real GDP per capita to economic growth?

Answer 1

Ansf) Real GDP for a given year, in relation is Calculated by multiplying the nominal GDP for a given year by the ratio of the GDP price deflator in the base year to the GDP price deflator for the given year.

Ansg) Economic Growth is the positive change in the real output of the country in a particular span of time. Economic Development involves rise in the level of production in an economy along with the advancement of technology improvement in living standards and so on.

Economic growth is applicable to developed Economies. Economic development is applicable to developing economies

Ansh) The real gdp per capita is useful when comparing one country to another, because it shows the relative performance of the countries. Real GDP per capita is a measurement of the total economic output of a country divided by the number of people and adjusted for inflation.