Know About Real Relative and Nominal Prices from Our Experts
Economics is an important part of study and it focuses on the economy conditions for small group of people and also a large group in distinctive way. Real relative and nominal prices are important and it needs a perfect solution of your problem. So, you must understand that how to solve out your problems. We from myhomeworkhelp.com works hard for you and you can easily grab our services in this topic just by selecting real relative and nominal prices homework help.
What is Nominal Price?
Nominal price of a good or any service means its exact price in terms of money. It can be measured by Yen, Dollar or French Franc. It means when something is purchased by someone with price, then it is said to be nominal.
What is real relative price?
An exact value of a good is an exact comparison in terms of any other service or good at the same time. When people talk suppose the college fee of one year is equal the price of Toyota, then this comparison is known as Real Relative Price.
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What is real value?
Sometimes to adjust the nominal value the price guide is applied and this may be the related to wages. It means the result of division of index price with an exact base-year value. It is very important as on this basis of nominal value division by growth factor of its related price index is the way of finding real value.
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What are the related factors that you should take care?
These are as follows-
- Real Growth rate
- Real Wages
- Real Interest Rate
- Cross Sectional Comparison
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