Comparison Of Nominal Gdp And Real Gdp Economics Essay

Comparison Of Nominal Gdp And Real Gdp Economics Essay In Macroeconomics, to distinguish price changes from quantity changes, we use the concepts of nominal GDP and real GDP. Nominal GDP measures the value of the output of final goods and services using the prices that prevailed at the time of measurement, or current prices. It is sometimes called current dollar GDP. Real GDP measures the value of the output of final goods and services using the prices that prevailed in some given or base year. It is sometimes called constant dollar GDP. By comparing real GDP from one year to another enables us to say whether the economy has produced more or fewer goods and services. Comparing nominal GDP from one year to another does not permit us to compare the quantities of goods and services produced in those two years , because GDP is not adjusted for certain bads. Thus, some economists argue that GDP overstates overall economic welfare. The following is an example of gross domestic product (GDP) figure that has not been adjusted for inflation: Also known as current dollar GDP or chained dollar GDP. It can be misleading when inflation is not accounted for in the GDP figure because the GDP will appear higher than it actually is. If the nominal GDP figure has shot up 8% but inflation has been 4%, the real GDP has only increased 4%. Real GDP is a macroeconomic measure of the size of an economy adjusted for price changes and inflation. Real GDP for a given year is the given years nominal GDP stated in the base p-year price level 2. Real GDP growth on an annual basis is the nominal and abnormal GDP growth rate adjusted for inflation and expressed as a percentage. Real GDP is adjusted for changes in prices and inflation throughout the year, because of this, it can be thought of in terms of purchasing power. Real GDP per Capita reflects GDP purchasing power of the average income individual in the economy. Nominal GDP is GDP evaluated at current market prices. Therefore, nominal GDP will include all of the changes in market prices that have occurred during the annual year due to deflation or inflation. Deflation is defined as a fall in the overall price level. Inflation is a rise in the overall price level. To determine changes in the overall price level, another measure of GDP called real GDP is used. The definition of Real GDP is GDP evaluated at the market prices of a base year. For example, if 1990 were chosen as the base year, then real GDP for 1995 is calculated by taking the quantities of all goods and services purchased in 1995 and multiplying them by their 1990 prices. GDP or Gross Domestic Product is the value of all the goods and services produced in a country. The Nominal Gross Domestic Product measures the value of all the goods and services produced expressed in current prices. On the other hand, Real Gross Domestic Product measures the value of all the goods and services produced expressed in the prices of some base year. An example: Suppose in the year 2000, the economy of a country produced $100 billion worth of goods and services based on year 2000 prices. Since were using 2000 as a basis year, the nominal and real GDP are the same. In the year 2001, the economy produced $110B worth of goods and services based on year 2001 prices. Those same goods and services are instead valued at $105B if year 2000 prices are used. Then: Year 2000 Nominal GDP = $100B, Real GDP = $100B Year 2001 Nominal GDP = $110B, Real GDP = $105B Nominal GDP Growth Rate = 10% Real GDP Growth Rate = 5% Notes: In economics, the nominal values of something are its money values in different years. Real values adjust for differences in the price level in those years. Examples include a bundle of commodities, such as gross domestic product, and income. For a series of nominal values in successive years, different values could be because of differences in the price level, an index of prices. But nominal values do not specify how much of the difference is from changes in the price level. Real values remove this ambiguity. Real values convert the nominal values as if prices were constant in each year of the series. Any differences in real values are then attributed to differences in quantities of the bundle or differences in the amount of goods that the money could buy in each year. Thus, the real values index the quantities of the commodity bundle or the purchasing power of the money incomes for each year in the series. The nominal/real value distinction can apply not only to time-series data, as above, but to cross-section data varying by region or householder characteristics. Nominal values are related to prices and quantities (P and Q) and to real values by the following definitions: nominal value = Pà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ã‚ ¢Q = Pà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ã‚ ¢real value. Nominal values such as nominal wages or (nominal) gross domestic product refer to amounts that are paid or earned in money terms. In the illustration of the previous section, for a single good with a nominal value, the nominal value of the good was divided by its unit price to calculate its real value, namely the quantity of the good. The same general method applies for calculation of other real values, except that a price index is used instead of the price of a single commodity. Real values (such as real wages or real gross domestic product) can be derived by dividing the relevant nominal value (money wages or nominal GDP) by the appropriate price index. For consumers, a relevant bundle of goods is that used to compute the Consumer Price Index. So, for wage earners as consumers a relevant real wage is the nominal wage (after-tax) divided by the CPI. A relevant divisor of nominal GDP is the GDP price index. Simple illustration: Numerical example: If for years 1 and 2 (say 20 years apart) the nominal wage and P are respectively $10 and $16 1.00 and 1.333, Real wages are respectively: $10 (= 10/1.00) and $12 (= 16/1.333). The real wage so constructed in each different year indexes the amount of commodities in that year that could be purchased relative to other years. Thus, in the example the price level increased by 33 percent, but the real wage rate still increased by 20 percent, permitting a 20 percent increase in the quantity of commodities the nominal wage could purchase. GDP can rise for at least two reasons. It can rise because of an increase in real production (which we like), or because of an increase in prices for the same amount of real production (which we do not like). To determine which is which, we differentiate the concepts of nominal GDP (that values products in terms of prices of that year) and real GDP (that adjusts for any price changes). Gross Domestic Product (GDP) is the market value of all final goods and services produced and purchased within a country during a given time period. There are two ways to measure GDP: Nominal GDP is the value of production at current market prices. Real GDP is the value of production using a given base year prices.

The Masque Of Red Death :: essays research papers

The Masque Of Red Death. A virus had come. It killed all that it touched. No one could survive, the red death. Nothing had ever been like it. Sharp pain dizziness and bleeding at the pores where its signs. When prince Prospero's town was half dead he called on 'a thousand hale and light hearted friends among the knights and dames of his court." He called them into a castle. Guarded with a metal gate. They stayed there for 6 months, Eluding the 'red death." They had every thing they need there. Entertainment, food and all other things needed to survive. It was at the end of the 5th or 6th month that he called for a masked ball or 'of the most unusual magnificence." Abstract art filled the room with beauty. The masque was held in a suite with 7 rooms. The rooms were most curios with turns at every corner and gothic windows. The colors of each room varied. The 7th chamber was all black. The only thing different about this room was that the windows did not match with every thing else. The pains where blood red, there was no light of any kind. In there stood giant ebony clock 'whose pendulum swung with a dull heavy activities clang." All activities ceased with the sound of each hour. Everything stooped as if dead. ' But when the echoes had full ceased, a light laughter at once pervaded the assembly…..'; The first 6 rooms crowed unlike the 7th, until the clock struck midnight. Everything ceased like before until the last echo of the clock sounded. Many people became aware of the masked figure. 'There arose a length from the whole company." First surprise then horror to this figure. When the eyes of Prince Prospero saw him he did not know what to do.

Ophelia Essay -- English Literature Essays

Ophelia A play with great value and quality would best describe one of Shakespeare’s intriguing plays, Hamlet. Events, dilemmas, action, and the characters all contribute greatly to make the play interesting and appealing. Every event that occurs leads to the outcome of dilemmas and action. The characters personalities is what makes the action is even more exciting. Each character has got their own special significance in the roles they play. However Ophelia, the daughter of the Lord Chamberlain Polonius, allows an atmosphere of simplicity and delicacy to surround the play. Her simple nature causes inner thoughts that allow us to question her true character. From the start of the play Ophelia seems to always keep her distance and speak very little. She is very distinctive of the other characters and keeps to herself most often. Her first presence in the play takes place when her brother, Laertes, and her father lecture her about keeping away from Hamlet and not believing his love. â€Å"Hold it a fashion, and a toy in blood,† (1.3. 6) this is said by Laertes as he describes that Hamlet’s love will last for a little while then fade, which makes his love insignificant. Ophelia doesn’t argue and agrees to remember what he said, however she immediately tells him to make sure he follows his own advice, â€Å"†¦and recks not his own rede.† (1.3. 51) Having said this by her displays a quality that is not usually seen. In accepting her brother’s advice she also makes sure he understands that he needs to take his own advice too. Generally with Polonius, who also disfavors Hamlet, she is very respectful and obedient. After a long lecture from him too she says â€Å"’tis in my memory locked† (1.3. 86) and â€Å"I shall obey my lord† (1.4. 136). In spite of h er love towards Hamlet she doesn’t debate the fact that he has not allowed her to see Hamlet anymore. She tells him the truth about what Hamlet has said or what she feels. Ophelia is the kind of girl who always had her father or brother telling her what to do and what to think. She says, â€Å"I do not know, my lord, what I should think†(1.3. 104) when her father asks her if she believes Hamlet’s love. Here she seems dubious and uncertain of her feelings or what she is to do. Ophelia is seen as inexperienced and very innocent for she doesn’t look like she understands love or her emotions. Due to her inexperience and lack of g... ...as always confident that he would result with the outcome he wanted. He took advantage of every chance he got. For example the players who performed the play ‘Mouse-trap’. Whereas, Ophelia, unlike Hamlet who ‘acted’ mad, really goes mad and sings her sorrow and mourning through. She doesn’t accept to face reality, for she is now on her own and without her father’s support. This proves that she had always needed someone to tell her what to do and how to feel. And now once her father was gone, there was no one to fill the emptiness she felt. Concluding, Shakespeare’s play, Hamlet, combines a lot of themes and remarkable incidents. Specifically the roles of each character unite to form an extraordinary impression on the play. Particularly, Ophelia’s character is very perceptive and penetrating. She is described as inexperienced, vulnerable, sensitive and very frail. Leading a very protective life doesn’t result in a positive end for her. Her attitude circles the play with a sense of deep warmth and the role she plays helps express the mood of the play. Although very different from Hamlet’s determined character, she has her own urbane manner. Quotes where taken from the play.

Everyday Use: A Mothers Choice Essay examples -- American Literature

A Mother's Choice In her short story "Everyday Use", author Alice Walker introduces us to a Mother awaiting the visit of her daughter, Dee, who has left her rural upbringing to go away to college. Although we are not told an exact location, the descriptions provided by Miss Walker lead us to believe that the story is set in the very poorest section of the south. Momma narrates this story, and describes to us in her own simple way the dynamics of the family and the conflicts that arise with Dee's homecoming. Momma tells us she is uneducated; "I never had an education. After second grade, the school was closed." She further describes her rough, rural lifestyle. "I can work outside all day, breaking ice to get water for washing...One winter I knocked a bull calf straight in the brain between the eyes with a sledge hammer and had the meat hung up to chill before nightfall." Although seemingly simple and backward, Momma clearly describes the differences between her two daughters, the conflict that comes about with Dee's homecoming and the choices she is forced to make between her two girls. Maggie and Dee are two sisters that are as different as night and day. When Momma talks of Maggie, it is with a sad and gentle reflection of this daughter's lot in life. "Have you ever seen a lame animal, perhaps a dog run over by some careless person rich enough to be kind to him? That is the way my Maggie walks." Momma tells us, however that Dee, "She would always look anyone in the eye. Hesitation was no part of her nature. " Where Dee is pretty and bright, Maggie is scarred and slow. Momma seems more content being in Maggie's presence, having more in common with her than with her daughter Dee. She and Maggie tend the house together, ... ...py and shout." The daughter who has the deeper family values, who understands the true nature of heritage will be getting the quilts. Although Dee tells momma "You just don't understand ... your heritage." it is she who does not understand the significance of what she holds in her hand. By making Momma the narrator, Alice Walker has given us a simple but clear viewpoint. Listening to Momma's voice, we can better understand the background that makes two daughters so opposite. Momma helps us comprehend the confusion and conflict that Dee's arrival back home brings, and how everyone reacts. Through momma's narration, we can follow her thought process as she wrestles with the decision of who should get the quilts. Without Momma, the reader would not feel as intricately involved in the story or identify with the emotions Alice Walker incorporates in "Everyday Use."

War on Iraq :: essays research papers

War on Iraq   Ã‚  Ã‚  Ã‚  Ã‚  Since the commencement of the controversial war in Iraq, people have been looking for other solutions to the conflict. Many suggestions have been voiced, but none so much and so loudly as the suggestion of simple assassination. People do not understand that assassination is not only impossible, but also never an end to conflict. Assassination of Saddam Hussein is not a viable option to end the U.S. conflict in Iraq.   Ã‚  Ã‚  Ã‚  Ã‚  The first and main reason that assassinating Hussein is unattainable is that the U.S. has a strict policy against assassination. In a section of the order labeled â€Å"Restrictions on Intelligence Activities,† Ford outlawed political assassination: Section 5(g), entitled â€Å"Prohibition on Assassination,† states: â€Å"No employee of the United States Government shall engage in, or conspire to engage in, political assassination.† Even if Hussein was locatable, the U.S. cannot even hire others to assassinate him. It would be absolutely against the law. In addition, according to a former senior Special Forces officer with firsthand experience of Gulf War assassination operations, â€Å"No one can tell you we weren’t trying to kill Saddam. We were, and that’s a fact. We weren’t very good because he is a [master] at deception, and keeping his presence low-profile.† Hussein is easily smart enough to evade assassins. H e has had experience doing so, and was previously successful in eluding the U.S. Whether due to its own laws, or Hussein’s unique abilities at deception, he would not be found to assassinate.   Ã‚  Ã‚  Ã‚  Ã‚  Also, Hussein is not the only threat. If we were to assassinate Hussein, we would only be putting his kids into power. This is not a smart idea. Put someone into power who was already ruthless and suspected of torture, and kill his father, and you are asking for trouble. If Hussein is killed, it will not stop the tyranny in Iraq. Are we willing to kill his entire family to attempt to keep Iraq safe?

Criminal homicide Essay

Criminal homicide is the most severe form of homicide and is considered one of the most serious crimes in society. This kind of homicide consists of unlawful conduct and malicious intent on the part of the killer. Murder is one form of homicide and is the most serious type. The crime of murder itself may seem straight forward but the laws surrounding the crime are intricate and entail a precise set of circumstances to institute the components of the murder. Murder is defined as â€Å"the purposeful, knowing, or reckless unlawful killing of another human being.† It has two separate components: The suspect must have acted with the required specific intent to kill and the suspect’s behavior must have caused the death of another human being. Many states use different terms to define intent or mens rea. Pennsylvania uses the terms lying in wait, willful, deliberate or premeditated to institute the required specific intent (Wallace & Roberson, 2012). The second component entails a death as an outcome of the suspect’s acts or failure to act and any conduct will meet the requirements. There are also different degrees of murder including first-degree, second-degree and manslaughter. These different degrees of murder depend on the purpose behind the killing and the way the killing is committed. The specific definition of each degree depends on the state or country that the crime is committed in. First-degree murder is different from the other two types of murder because it is planned. Normally, first-degree murder is a criminal offense involving intent, homicides that are planned, or homicides that occur during the commission of another felony. The crime of first-degree murder needs the intent to kill, premeditation of that killing and deliberation of that killing. Some examples of first-degree murder are poisoning, bombing and assault with a deadly weapon. The penalty for committing first-degree murder is different depending on which state the crime is committed in but is most likely life imprisonment or even the death penalty. Defenses against first-degree murder include actual innocence, mistaken identity, justified homicide, self-defense, defense of others and insanity. Second-degree murder is a crime of passion or an unlawful killing where the intent to kill and the act of killing itself happen almost simultaneously (Schmalleger, 2012). For example, a person who commits a killing in a fit of rage or a person who is motivated to kill by receiving insults or physical abuse, are likely to be charged with second-degree  murder. But the act of killing must happen instantly after the fit of rage or insults because if time lapses between the two than it permits the chance for thought to occur which would turn into premeditation and therefore become first-degree murder. Defenses against second-degree murder include actual innocence, insanity, and self-defense. Third-degree murder or manslaughter is different from the other degrees because it refers to homicides that result from someone’s action that is unlawful or negligent. Other names for third-degree murder include negligent homicide, negligent manslaughter, or involuntary manslaughter. Manslaughter is a less serious crime than first or second degree murder because it involves carelessness and not purposeful killing. An example of manslaughter is a drunk driver who causes a fatal accident can be charged with vehicular manslaughter. Defenses against manslaughter include actual innocence, accidental killing and intoxication.

Analyse the Strengths and Weaknesses of Spain by 1516 Essay

There were considerable differences between the Hispanic kingdoms within the Iberian peninsula. It was divided by language and religion, governed by different political institutions and ruled by monarchs with conflicting foreign interests. Both Aragon and Castile had very little in common. The economies varied in strength in different parts of Spain, for example Catalonia was in decline whilst Valencia was in the recovery stage. The marriage of Isabella and Ferdinand in 1469 dramatically changed the course of Spain. The Queen was a determined and quick-witted woman, with a ‘street-fighter’s instinct for survival’. She guaranteed privileges to nobles and town authorities, promised to restore law and order and was the only claimant with an undisputed right to the throne. Ferdinand played a role in leading Isabella’s troops against the Portuguese and French invasions and recaptured rebellious towns, all helping to stabilise the crown. His brother also aided Isabella by commanding the Hermandad meaning that although his father died, no Aragonese nobles contested the crown. Royal authority had declined during the weak rule of Henry IV and it needed to be asserted and there was also the problem of law and order (lots of disorder in Castile due to the 5 years civil war). There were still supporters of Joanna; a minority of the nobility had fought against Isabella e.g Marquis of Vienna. The Hermandad at least brought some justice to the countryside, which benefited Castilian towns as well as law-abiding landowners. Hermandades had never been controlled so extensively by the Crown, it significantly contributed to the improvements in local administration. Corregidores were also having an impact (administrators of cities and districts with both administrative and judicial powers). They were used by the Catholic Monarchs to strengthen royal authority rather than revive local responsibility Ferdinand and Isabella travelled extensively in Castile. They spent relatively little time in Aragon in his 37-year reign (7 years). This was a very important means of asserting royal authority by showing themselves to their subjects and establishing an effective working relationship with their nobility and to discipline any troublemakers. Ferdinand and Isabella visited every Castilian town at least once. Ferdinand tried to increase royal authority over Aragonese towns by trying to introduce new procedures for the election of municipal offices. His idea of sending royal governors to towns was rejected preventing royal authority encroaching. Isabella was able to have a greater effect on improving local administration than her husband. She tried to protect, by intervention, town people from impressive nobles and nominated jurados to sit on town councils. She persisted with the idea of Corregidores in towns, despite opposition, and the number of towns with them increased (Toledo for instance enjoyed a long period of peace largely due to Gomez Manrique, its Corregidore.). Their authority varied, some governed entire regions, and others had a limited impact. However, overtime they became more corrupt lowering the standards of local administration. The civil war left deep scars and required close supervision to work effectively. Both Isabella and Ferdinand dispersed justice personally. The Hermandad was unpopular and it demanded taxation on local people for its maintenance. It was officially dissolved in 1498 as nobles increasingly disliked it (didn’t want too much crown influence). The crowns political strength lay into relationship with the nobility. Ferdinand and Isabella however, due to incompatible promises in the 1470’s, were in a different situation as some families expected rewards for their role in the civil war. This often contradicted what Isabella had said about protecting the rights of the towns. Isabella decided to harness the power of the nobility and tried to regain land given out by Henry IV. Isabella and Ferdinand on a smaller scale in Aragon gave the nobles rights to collect sales tax and confirmed their exemption from direct tax. This guaranteed their social and economic position. Also nobles who had fought against Isabella in the civil war were given fair agreements such as the Marquis of Vienna in order to preserve social stability. Those on her side were awarded with for example dukedoms guaranteeing their continuing support. Although some nobles maintained control of regional politics, which was a big threat to the crown as they had no standing army, whereas most nobles kept retainers. An example of when the crown and nobility worked together to ensure the stability of the country was the Granada between 1482 and 1492. Some of the nobility actually served in the war and fought on behalf of the crown against the Muslims. The war helped to enhance royal prestige. However, outbreaks of civil disorder and violence in Castile in the early years of the sixteenth century suggest that royal administration was beginning to break down. Nobles became better educated and there was an emergence of letrados (lawyers). Most Castilian and Aragonese peasants enjoyed a period of relative prosperity, with wage rises, stable prices and plenty of employment in the countryside. Town life was changing rapidly, Castilian merchants experienced a dramatic increase in trade and commerce, which led to a growth in business and rising prosperity for those in work. However, due to an increase in population town authorities were faced with the problem of vagrancy where people wonder from place to place and don’t usually have a home. The Catholic Monarchs intended to enhance the welfare of their subjects. They maintained the Mesta’s monopoly and continued wool trade, which was high in demand in the Low Countries. Taxes on wool and sheep and the establishment of trade links with America (gold bullion), proved extremely beneficial. Maintaining the quality of Castile’s coinage and establishing a currency common to both kingdoms, monetary if not economic unity was achieved. Overseas trade was strengthened with Venice as a base, and the financial status and prosperity of Barcelona recovered from the effects of the civil war in the 1460s. However the Spanish economy had a number of weaknesses, poor communications (bad roads, mountainous), a network of internal customs duties and inland tolls and resistance to state intervention in effecting changes in agriculture, guilds and industry. Regionalism was a very powerful force and applied to the economy. There was no significant attempt to integrate the two economies, for example, trade with Americas was a Castilian monopoly (intensified hostility between two kingdoms, threat of inflation and decline in currency). The only measure that was taken was the standardisation of the currency in 1497. The Spanish Crown failed to protect and promote its native industries and focused too much on exportation of wool than developing its textile industry. Also, the persecution of the Conversos and Jews (many of them were skilled craftsmen) damaged wool trade, while the silk trade was damaged with war in Granada (mudejars were main producers of silk, many were killed while others emigrated). Spanish wealth and commercial gains from the New World could potentially fall through due to its lack of incorporation.