Table of Contents
- 1 What term refers to the loss of the value of capital equipment that results from natural wear and tear?
- 2 What are the factors that influence GDP?
- 3 What is depreciation quizlet?
- 4 What is functional obsolescence quizlet?
- 5 What increases long run economic growth?
- 6 What is the a decline in real GDP combined with a rise in the price level?
What term refers to the loss of the value of capital equipment that results from natural wear and tear?
deprecation. the loss of the value of capital equipment that results from normal wear and tear or a decrease in the currency value. price level.
What are the factors that influence GDP?
The four supply factors are natural resources, capital goods, human resources and technology and they have a direct effect on the value of good and services supplied. Economic growth measured by GDP means the increase of the growth rate of GDP, but what determines the increase of each component is very different.
What is a steady long term increase in real GDP?
economic growth. a steady, long-term increase in real GDP.
What would be the result of a combination of inflation and flat wages?
His purchasing power is decreasing. What would be the result of a combination of inflation and flat wages? a. Goods would be easier to afford.
What is depreciation quizlet?
Depreciation is defined as the allocation of the cost of a non-current asset over its estimated useful life. It is considered as part of the cost of non-current asset that has been used up to earn income.
What is functional obsolescence quizlet?
Functional obsolescence is a property’s loss of value due to functional inadequacies that are usually caused by age or poor design, such as a poor floor plan, excessively high or low ceilings, or antiquated architecture.
How does GDP increase and decrease?
Understanding Gross Domestic Product (GDP) The GDP of a country tends to increase when the total value of goods and services that domestic producers sell to foreign countries exceeds the total value of foreign goods and services that domestic consumers buy. In this situation, the GDP of a country tends to decrease.
What affects country GDP?
Gross Domestic Product (GDP) Defined The GDP of a country is calculated by adding the following figures together: personal consumption; private investment; government spending; and exports (minus imports).
What increases long run economic growth?
Determinants of long-run growth include growth of productivity, demographic changes, and labor force participation. When the economic growth matches the growth of money supply, an economy will continue to grow and thrive. When the GDP growth is only caused by increases in population, the growth is excessive.
What is the a decline in real GDP combined with a rise in the price level?
Economy Chapter 12 Vocabulary Sect. 2 & Sect. 3
| A | B |
|---|---|
| depression | a recession that is especially long and severe |
| stagflation | a decline in real GDP combined with a rise in the price level |
| leading indicators | key economic variables that economists use to predict a new phase of the business cycle |
Which of the following would result in a decrease in consumer spending?
Which of these actions would most likely result in a decrease in consumer spending? Increasing income taxes. If a government sets a maximum price for a good or service, what does it create?