Answer:
Human and physical capital; technological change; savings; investment.
Explanation:
The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being, these includes;
I. Real Gross Domestic Product should be adjusted for any price level change using a price index. This simply means, it is adjusted for inflation to measure the value of goods and services produced by a country in a specific period of time.
Mathematically, [tex]{Real \; GDP} = \frac{Nominal \; GDP}{GDP \; deflator}[/tex]
Countries' real GDP per capita growth rates differ largely due to disparities in the rates at which they accumulate human and physical capital, as well as the rate of technological change. In many countries, growth has been achieved through high rates savings and investment spending.
Hence, an inflationary gap, also known as the expansionary gap in economics is used to measure the difference between the gross domestic product (GDP) and the current level of Real Gross Domestic Products that exists when a country's economy is gauged at a full employment rate.
