by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Effect of Sustained Economic Growth?Nothing is more important for people’s standard of living than sustained economic growth. Even small changes in the rate of growth, when sustained and compounded over long periods of time, make an enormous difference in...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How are compound growth rates and compound interest rates related?The formula for GDP growth rates over different periods of time is exactly the same as the formula for how a given amount of financial savings grows at a certain interest rate over time, as presented in...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are the Components of Economic Growth?Economic growth is defined as an increase in total product or what is produced in a nation. The c components that give rise to economic growth include: Workforce Human Capital Physical Capital Technology These factor relate...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Growth Accounting Studies?Growth accounting studies seek to determine the extent to which physical and human capital deepening and technology have contributed to growth. The usual approach uses an aggregate production function to estimate how much of per...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How to Convert Nominal to Real GDP?To convert nominal to real GDP, we generally use some form of index number. This puts the current value into real terms – meaning that it subtracts out inflation that has raised the costs of items calculated as part of GDP....
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the GDP Deflator?GDP Deflator is a price index used to convert the stated level of GDP in an economy into real terms. This means that you are converting the current dollar value to the same dollar value at an earlier time period, so that you can compare the...
