SCIENCE
ENVIRONMENTAL SCIENCES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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negative GDP
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Very high GDP
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low GDP
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no GDP
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Detailed explanation-1: -Burundi is believed to have a GDP per capita of just 308 U.S. dollars-for reference, Luxembourg has the highest GDP per capita in the world, at almost 129, 000 U.S. dollars, which is around 420 times larger than that of Burundi (U.S. GDP per capita is over 250 times higher than Burundi’s).
Detailed explanation-2: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year).
Detailed explanation-3: -If, for example, Country B produced in one year 5 bananas each worth $1 and 5 backrubs each worth $6, then the GDP would be $35. If in the next year the price of bananas jumps to $2 and the quantities produced remain the same, then the GDP of Country B would be $40.
Detailed explanation-4: -In general, calculating real GDP is done by dividing nominal GDP by the GDP deflator (R). For example, if an economy’s prices have increased by 1% since the base year, the deflating number is 1.01. If nominal GDP was $1 million, then real GDP is calculated as $1, 000, 000 / 1.01, or $990, 099.