national income

Question 1

nominal income

Answer 1

total value of goods and services produced in a country expressed at the current price

Question 2

nominal equation

Answer 2

q ( quantity of final goods and services produced in a accounting year) P ( price of those goods at during the same year) P x Q

Question 3

real increase in national income ( gdp)

Answer 3

if we produce more goods that is considered real increase

Question 4

monetary increase in national income (gdp)

Answer 4

not significant since its only the illusion of money

Question 5

real national income calculation

Answer 5

Q x P quantity Q ( quantity of goods and services produced for that year) P ( price of the goods and services for the base year)

Question 6

nominal to real income

Answer 6

national income x base year price index/ current year price index

Question 7

gdp deflator

Answer 7

gdp at current price / gdp at constant prices) x 100