BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
quantities produced in different years using prices from a year chosen as a reference period
|
|
|
quantities produced in different years with the prices that prevailed during the year in which the output was produced
|
|
|
the quantities of goods produced in consecutive years using prices in both years and averaging the percentage changes in the value of output
|
|
|
prices at different points in time using a sample of goods that is representative of goods purchased by households
|
Detailed explanation-1: -It can be calculated by (1) finding real GDP for two consecutive periods, (2) calculating the change in GDP between the two periods, (3) dividing the change in GDP by the initial GDP, and (4) multiplying the result by 100 to get a percentage.
Detailed explanation-2: -The formula for calculating GDP with the expenditure approach is the following: GDP = private consumption + gross private investment + government investment + government spending + (exports – imports).
Detailed explanation-3: -Real GDP Formula – Example #3 We can now calculate real GDP for every year in 1994 dollars. Note that real GDP for the base year is equal to the nominal GDP for that year.
Detailed explanation-4: -Real GDP is expressed in base-year prices. It is often referred to as constant-price GDP, inflation-corrected GDP, or constant dollar GDP. Put simply, real GDP measures the total economic output of a country and is adjusted for changes in price.