ECONOMICS (CBSE/UGC NET)

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ECONOMICS

GDP

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The U.S. Government hired 10 Chinese-language experts, from China, to train U.S. Workers.
A
GDP increases
B
GDP decreases
C
No change
D
None of the above
Explanation: 

Detailed explanation-1: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.

Detailed explanation-2: -GDP = GDP at market price – depreciation + NFIA (net factor income from abroad) – net indirect taxes. Income Approach : The Income approach of GDP calculation is based on the total output of a nation with the total factor income received by residents or citizens of a nation.

Detailed explanation-3: -Consumption expenditures and gross investment are the measures of government spending included in calculations of gross domestic product, or GDP.

Detailed explanation-4: -Consequently, real GDP provides a more accurate portrait of economic growth than nominal GDP because it uses constant prices, making comparisons between years more meaningful by allowing for comparisons of the actual volume of goods and services without considering inflation.

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