Nominal versus Real Gross Domestic Product

Nominal versus Real Gross Domestic Product The Gross Domestic Product (GDP) can be defined as the value of all goods and services that a country can produce in a period of one year. Nominal gross domestic product is basically the use of current prices to value the goods and services of country in a specific year. Real gross domestic product just like nominal GDP, is the valuation of a country’s output in terms of the goods and services produced by the citizens in a particular year (Griffiths Wall, 2011).Advertising We will write a custom essay sample on Nominal versus Real Gross Domestic Product specifically for you for only $16.05 $11/page Learn More The only difference is that, this measure utilises the prices of a particular past year normally referred to as the base year. It should be noted that the main difference between real gross domestic product and nominal domestic product is that when calculating real GDP, the prices of goods and services are adjusted for inflation while in the cal culation of nominal GDP, this is not done. According to Griffiths Wall (2011) â€Å"Real gross domestic product is basically the use of current prices to measure the value of the goods and services that a specific country produces in a particular year while the nominal gross domestic product uses current market prices to measure the value of the same goods and services†. It is important to note that economists consider real GDP as the better measure between the two. Another definition that has been used to differentiate between the two is the definition of nominal GDP as a country’s national output. A country’s national output has been defined by various economists as the product of the price and quantity of the goods and services that its citizens produce in a particular year. In order to arrive at the Real GDP, the nominal GDP is normally divided by the rate of inflation in the country. Inflation has been defined as â€Å"the general increase in the prices o f goods and services† (O Sullivan Steven). It is important to note that the reason why the value is adjusted for inflation is due to the fact that in case of a price increase in a subsequent year, nominal GDP would not give the true value if the adjustment is not made as it would be larger than it should actually be. It is important to note that when the nominal gross domestic product is manipulated by the price index, real gross domestic product is arrived at. Another important issue to note is that it is not possible to make a comparison between the nominal gross domestic product and the gross domestic product rates recorded in previous years or decades. It should be noted that any increase in the rate of inflation leads to a corresponding increase in nominal gross domestic product. Real gross domestic product is therefore used to assess the overall production of goods and services in a particular country. Nominal gross domestic product on the other hand is used to present the raw data regarding the production of goods and services in a particular year and disregards the relative value of the currency in terms of what exactly the currency can buy.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More References Griffiths, A Wall, S. (2011).Economic for Business and Management, Third edition, Harlow Pearson Education Limited O Sullivan, A. Steven M. S. (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall

3 Not Only . . . but Also Errors with a Choice of Solutions

3 Not Only . . . but Also Errors with a Choice of Solutions 3 Not Only . . . but Also Errors with a Choice of Solutions 3 Not Only . . . but Also Errors with a Choice of Solutions By Mark Nichol One of the most persistent and pernicious types of syntactical errors is the misuse of the point-counterpoint â€Å"not only . . . but also† construction. For each of the following three sentences, the discussion that follows offers not only one revision but also an additional option. 1. The loss or theft of intellectual property not only could undermine a company’s ability to compete but damage its brand and reputation in unanticipated ways. A minor but common error here is the omission of also in the â€Å"but also† setup for the counterpoint. The more significant problem is that if the verb associated with â€Å"not only† follows it, â€Å"but also† must be followed by a repetition of the verb or by a different but corresponding verb. Alternatively, move could to precede â€Å"not only,† and it can serve â€Å"but also† as well without the need for repetition: â€Å"The loss or theft of intellectual property not only could undermine a company’s ability to compete but also could damage its brand and reputation in unanticipated ways.† (Could can, alternatively, intervene between but and also.) or â€Å"The loss or theft of intellectual property could not only undermine a company’s ability to compete but also damage its brand and reputation in unanticipated ways.† 2. It is imperative to not only design and  implement appropriate corporate governance processes  but also to assess the  risks businesses can reasonably expect to face in the future. If to precedes the â€Å"not only† point, it also applies to the â€Å"but also† counterpoint, so the to immediately following â€Å"but also† is extraneous. If that other to is to be retained, the first one must be moved to follow â€Å"not only† to be in parallel to the one that follows â€Å"but also†: It is imperative to not only design and  implement appropriate corporate governance processes  but also assess the  risks businesses can reasonably expect to face in the future.† or â€Å"It is imperative not only to design and  implement appropriate corporate governance processes  but also to assess the  risks businesses can reasonably expect to face in the future.† 3. Not only does the product clean lint on clothing, but also the interior of handbags, lampshades, curtains, furniture, car seats and flooring, animal fur, broken glass, and so much more. Here, both revisions also involve a slight rewording of the initial proposition and the follow-up so that readers do not get the mistaken impression that the product cleans lint from everything listed; the lint-removal aspect pertains only to clothing, though the product cleans everything else. Both revisions clarify that distinction, but the latter version is also more direct: â€Å"Not only does the product remove lint on clothing, it also cleans the interior of handbags, lampshades, curtains, furniture, car seats and flooring, animal fur, broken glass, and so much more.† or â€Å"The product not only removes lint from clothing but also cleans the interior of handbags, lampshades, curtains, furniture, car seats and flooring, animal fur, broken glass, and so much more.† Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Style category, check our popular posts, or choose a related post below:50 Synonyms for â€Å"Leader†50 Idioms About Arms, Hands, and Fingers"Wracking" or "Racking" Your Brain?