Gross Domestic Product (GDP), Macroeconomics, Nominal, Real & GDP Deflator
Nominal GDP As defined through the production approach, GDP represents the total value of goods and services produced within the borders of a country, during one year period. If this value is expressed in current prices, we have nominal GDP. However, using nominal GDP...
GDP vs GNP, Gross Domestic Product (GDP), Macroeconomics
Although both GDP and GNP measure the size of an economy, either for business or economics forecasting purposes, they are not one and the same thing. Therefore, one should not be confused by their similar terminology. Simply put, while GDP looks at the strength of a...
3 Approaches of Calculating GDP, Gross Domestic Product (GDP), Macroeconomics
One of the most common ways to measure the size of an economy, in other words, the aggregate output of a country, is by compiling the gross domestic product (GDP). As defined by the World Bank, GDP represents the market value of all final goods and services...
Gross Domestic Product (GDP), Macroeconomics
Although GDP is commonly used to measure the size of an economy nowadays, Simon Kuznets, the economist who created this tool has warned against its use as a measure of welfare. Commissioned by the US Congress in 1934 to create a system that would monitor the...
Macroeconomics, Unemployment
Joblessness or unemployment is prevalent in every economy and it is yet another important macroeconomic factor that shows the growth and productivity of a Country.We usually don’t use the term UNEMPLOYMENT but we do use JOBLESSNESS in our daily lives. Both are the...
Demand pull and Cost Push Inflation, Inflation, Macroeconomics
In all of our lectures we have been discussing how an increase or decrease in Supply or Demand For money consequently increase or decrease Inflation. In this lecture, we emphasize on important modern inflationary theories that is Demand Pull inflation and Cost Push...
Economic Impact of Inflation, Inflation, Macroeconomics
There are many deadly effects of inflation. Two of the most important are: Redistribution of Wealth and Income among the People Distortion in the Production of Goods, employment and relative Prices (During Periods of Inflation all prices and wages do not change at the...
Balanced and Unbalanced Inflation, Inflation, Macroeconomics
Balanced Inflation Consider its title “Balanced”, a type of inflation when all the prices increases proportionately. So its more like an increase in the prices of all of the Products rather just a few. This kind of inflation manage your money matters accordingly as...
Anticipated vs. Unanticipated Inflation, Inflation, Macroeconomics
Anticipated Inflation We can simply understand this phenomenon by its title “ANTICIPATED” , which means Predicted or “KNOWN”. Such a “PREDICTED INFLATION” does not cause enough harm to the people since you can handle it by proper planning. For Example you know that...
Deflation Vs Disinflation, Inflation, Macroeconomics
Deflation and Disinflation are not the same. Although they all show the behavior of Price level but They are different in their direction and change in the Rate of Price Level. Deflation means an opposite to Inflation Or Falling Price (just like we have rising prices...
