ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Real national income
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Nominal national income
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The international value of the currency
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Real interest rates
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Nominal interest rates
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Detailed explanation-1: -When the average price level increases by 10 percent in a given year, which of the following must increase by 10 percent for real output to remain constant? inflation and unemployment.
Detailed explanation-2: -The correct answer Running. A sudden acceleration in the rate of rising prices is referred to as Running Inflation. When prices rise by more than 10% per annum, running inflation occurs.
Detailed explanation-3: -Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.
Detailed explanation-4: -Nominal GDP = Real GDP x GDP Deflator GDP Deflator: A measurement of the change in price over a duration of time (inflation or deflation). It is calculated as the ratio of Nominal GDP to Real GDP.