ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cost push inflation
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Consumer price Index
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Full capacity output
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Relative deflation
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Detailed explanation-1: -Full employment GDP is a hypothetical GDP level which an economy would achieve if it reported full employment. That is, it’s the GDP level corresponding to zero unemployment in the economy.
Detailed explanation-2: -Potential GDP – ideal economic condition with 100% employment across all sectors, steady currency, and stable product prices.
Detailed explanation-3: -What is it? Nominal GDP is the Gross Domestic Product without any effect of inflation. Real GDP is the inflation-adjusted GDP of a country. The Nominal GDP of a country is expressed in terms of current year prices of goods and services.
Detailed explanation-4: -Potential GDP is the maximum capacity. Meanwhile, real GDP is the actual output produced by machines. Perhaps you would hear the real GDP more frequently than potential GDP. Often, you see economic growth figures in various news media.