Since Gross Domestic Product is based on the monetary value of the output of the economy, GDP is thus subject to inflationary pressure because over a period of time, prices typically go up in an economy and that will be reflected in the GDP figure thus by just looking at the GDP of the economy, it is sometimes difficult to tell whether the GDP figure increased due to inflation or increase in production.
Dana05 answered the question on July 3, 2019 at 10:59
- Identify the three approaches in which a country can compute Gross Domestic Product (Solved)
Identify the three approaches in which a country can compute Gross Domestic Product
Date posted: July 3, 2019. Answers (1)
- Describe any three indicators of economic development (Solved)
Describe any three indicators of economic development
Date posted: July 3, 2019. Answers (1)
- Highlight the requirements for economic development to take place (Solved)
Highlight the requirements for economic development to take place
Date posted: July 3, 2019. Answers (1)
- What the objectives of economic development?(Solved)
What the objectives of economic development?
Date posted: July 3, 2019. Answers (1)
- Briefly explain any five differences between economic growth and economic development (Solved)
Briefly explain any five differences between economic growth and economic development
Date posted: July 3, 2019. Answers (1)
- Briefly discuss the factors that determine economic development (Solved)
Briefly discuss the factors that determine economic development
Date posted: July 3, 2019. Answers (1)
- Give the definition of economic development (Solved)
Give the definition of economic development
Date posted: July 3, 2019. Answers (1)
- Differentiate between economic expansion and economic shrinking (Solved)
Differentiate between economic expansion and economic shrinking
Date posted: July 3, 2019. Answers (1)
- Kenya is currently experiencing very high level of unemployment among the youth. Explain the causes of youth unemployment and discuss elaborately the policy measures that you...(Solved)
Kenya is currently experiencing very high level of unemployment among the youth. Explain the causes of youth unemployment and discuss elaborately the policy measures that you would adopt or recommend to government policy makers so as to deal decisively with this problem
Date posted: June 30, 2019. Answers (1)
- Outline limitations of quantity theory of money(Solved)
Outline limitations of quantity theory of money.
Date posted: May 17, 2019. Answers (1)
- Briefly outline Karl Marx's critique of the classical system and show why his prediction that the capitalist system was doomed to collapse did not materialize(Solved)
Briefly outline Karl Marx's critique of the classical system and show why his prediction that the capitalist system was doomed to collapse did not materialize.
Date posted: April 5, 2019. Answers (1)
- Explain 5 constraints to demand and supply(Solved)
Explain 5 constraints to demand and supply.
Date posted: March 20, 2019. Answers (1)
- Explain the roles of parliament in budgetary process(Solved)
Explain the roles of parliament in budgetary process.
Date posted: March 9, 2019. Answers (1)
- List some effects of fiscal policy(Solved)
List some effects of fiscal policy.
Date posted: March 8, 2019. Answers (1)
- Explain the impact of trade protectionism(Solved)
Explain the impact of trade protectionism.
Date posted: February 27, 2019. Answers (1)
- State and explain seven types of unemployment(Solved)
State and explain seven types of unemployment
Date posted: February 27, 2019. Answers (1)
- Briefly explain the relationship between unemployment and inflation and which causes the other(Solved)
Briefly explain the relationship between unemployment and inflation and which causes the other.
Date posted: February 27, 2019. Answers (1)
- Define the various types of externalities(Solved)
Define the various types of externalities.
Date posted: February 25, 2019. Answers (1)
- How do distortionary taxes cause market failure(Solved)
How do distortionary taxes cause market failure
Date posted: February 25, 2019. Answers (1)
- Non-excludability property of pure public goods brings about the free rider problem. Explain(Solved)
Non-excludability property of pure public goods brings about the free rider problem. Explain
Date posted: February 25, 2019. Answers (1)