Since the AIDS Virus Has Reduced Life Expectancy in Some

question 64

Essay

Since the AIDS virus has reduced life expectancy in some sub-Saharan African countries by as much as 20 years, the result is that some countries, such as Botswana and Zimbabwe, will each lose half of their adult population within a decade. Briefly discuss the implications of this tragedy.

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Definitions:

Price Level

An index of the average prices of goods and services throughout an economy, often used to measure inflation.

Nominal GDP

The gross domestic product measured in current prices, without adjustment for inflation.

Classical Dichotomy

The theoretical separation of nominal and real variables in the economy, suggesting that changes in the money supply only affect nominal variables.

Nominal Variables

Economic variables measured in current prices, without adjusting for inflation, reflecting their value in terms of current money.