/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q. 24 Why do you think that GDP does n... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 19: Q. 24 (page 471)

Why do you think that GDP does not grow at a steady rate, but rather speeds up and slows down?

Short Answer

Expert verified

Business cycle fluctuations.

Step by step solution

01

Step1. Introduction

GDP never shows a steady growth rate. It either increases heavily, or slows down considerably. It never grows at a steady rate but with fluctuations.

02

Step2. Explanation

The GDP shows fluctuations in its growth due to the general fluctuations in the business cycle of an economy. When a business cycle enter a boom period, GDP increases tremendously. But, when it enters a recessionary period, it will undergo a decline.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Why must you avoid double counting when

measuring GDP?

In 1980, Denmark had a GDP of \(70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of \)160 billion (measured in U.S. dollars) and a population of 5.3 million. By what percentage did Denmark鈥檚 GDP per capita rise between 1980 and 2000?

Which of the following are included in GDP, and which are not?

  1. The cost of hospital stays
  2. The rise in life expectancy over time
  3. Child care provided by a licensed day care center
  4. Child care provided by a grandmother
  5. A used car sale.
  6. A new car sale
  7. The greater variety of cheese available in supermarkets
  8. The iron that goes into the steel that goes into a refrigerator bought by a consumer.

A mortgage loan is a loan that a person makes to purchase a house. Table 19.11 provides a list of the mortgage interest rate for several different years and the rate of inflation for each of those years. In which years would it have been better to be a person borrowing money from a bank to buy a home? In which years would it have been better to be a bank lending money?

Why do you suppose that U.S. GDP is so much

higher today than 50or 100years ago?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.