Real GDP is Nominal GDP - Inflation
so what you would do is calculate the rate of inflation in Year 3 as compared to the base year say it is x%
then you would find x% of the GDP given for year 3 (say this is = y)
then Real GDP for year 3 = 820 bn - y bn
CAD is a measure of external stability and if the CAD is reduced, its likely to make Australia look better to foreign investors thus leading to greater investment into Australia
reduced CAD using the Twin Deficits Hypothesis where the surplus money can be used to pay off overseas debt and can add to national savings through financing future investment
Hey guys,
Do any of you know a website where I can get past HSC worked solutions as oppoosed to the 'marking notes' on the BOS website?
Help is much appreciated ! :smile: