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Depreciation of the currency of Exam land would increase the nominal value (monetary value) of National Income; since depreciation constitutes a reduction in the relative value of the domestic currency of Exam land, the tendency is for prices to increase, thereby increasing the nominal value of National Income. Nominal value, in this case, refers to the value of NI at current prices (which have not been adjusted for inflation). This is where the GNP deflator (the ratio of nominal GNP to real
GNP) is required to remove the impact of inflation to give real values.
Wilfykil answered the question on February 7, 2019 at 10:35
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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The table below represents estimated national income values for hypothetical economy X in millions of shillings:
Gross National Product (at market prices) = 389.2
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)
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Date posted: February 7, 2019. Answers (1)