BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The trend lines show that while nominal GDP has tended to fall over the last 25 years, once adjusted for prices, the real GDP growth rate has tended to rise. Finally, we will add a moving average trend line to the R&D expenditure data.

Detailed explanation-2: -An increase in GDP does not necessarily mean a nation has produced more output; it must be specified whether the GDP in question is nominal or real. An increase in nominal GDP may just mean prices have increased, while an increase in real GDP definitely means output increased.

Detailed explanation-3: -The graph illustrates that both real GDP and real GDP per capita have substantially increased since 1900. Real GDP is important because it is highly correlated with other measures of economic activity, like employment and unemployment. When real GDP rises, so does employment.

Detailed explanation-4: -Real gross domestic product (real GDP) is a measure of the value of all final goods and services produced during a particular year or period, adjusted to eliminate the effects of price changes. The economy follows a path of expansion, then contraction, then expansion again.

Detailed explanation-5: -But real GDP growth does move in cycles over time. Economies are sometimes in periods of boom, and sometimes in periods of slow growth or even recession (with the latter often defined as two consecutive quarters during which output declines).