Chapter 19: Q. 16 (page 470)
How do you convert a series of nominal economic data over time to real terms?
A series of nominal economic data over time can be converted to real terms by dividing the nominal term by the price level and multiplying by.
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According to Table , how long has the average expansion lasted since the end of World War II?
Why do you suppose that U.S. GDP is so much
higher today than or years ago?
Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living.
a. The environment becomes dirtier
b. The crime rate declines
c. A greater variety of goods become available to consumers
d. Infant mortality declines
A mortgage loan is a loan that a person makes to purchase a house. Table 19.11 provides a list of the mortgage interest rate for several different years and the rate of inflation for each of those years. In which years would it have been better to be a person borrowing money from a bank to buy a home? In which years would it have been better to be a bank lending money?
What is the difference between a series of economic data over time measured in nominal terms versus the same data series over time measured in real terms?
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