Price Index

Price Index A Price Index is a measure of the average level of prices. So when we see a news on the TV that “Inflation is rising”, they are really reporting the movement of a Price Index. A price index is a weighted average of the price of a basket of goods and...

Real GDP, Nominal GDP and GDP Deflator

Nominal GDP Nominal GDP is simply the value of all final goods and services produced in a country or in other words it is the current market value of Goods and services. As discussed before the formula for Nominal GDP is as follows Whereas P and Q are the current...

GDP and Its Approaches

What is the Gross Domestic Product (GDP)? Have you Ever thought how an economic activity is measured in a country? And what about the resources being utilized and the production being made within a country .  Well ! There are tools. And one of the tools is GDP ,...

GDP – Gross Domestic Product

The widespread measure of the total output in a country’s economy is called  GDP (Gross Domestic Product). GDP is basically a measure of the market value of all services and final goods produced in a country during a year. It as well is equal to the sum of the value...