WHAT IS GDP GDP – 1.22$ Trillion in 2008 GDP rate – 6.7 % overall It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy.
SIZE OF GDP OF INDIA IN 2008
GDP DEFLATOR In economics, the GDP deflator (implicit price deflator for GDP) is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. GDP Deflator =(Nominal GDP*100)/Real GDP
GDP DEFLATOR IN 2008
CONSUMER PRICE INDEX A consumer price index (CPI) is a measure estimating the average price of consumer goods and services purchased by households.
DIFFERENCE GDP DEFLATOR CPI * All goods & services produces * On the basis of basket which Within the country. Includes few consumable goods. * Change in price of all goods & * Change in price of goods services. Included in basket. * Measured Weakly. * Measured yearly. * Measure all goods & services. * Measure only consumable good & services.
WHOLESALE PRICE INDEX A Wholesale Price Index (WPI) is the price of a representative basket of wholesale goods.
DIFFERENCE CPI WPI * It measures inflation * It measures at each stage in final stage * Price increase for * Price increase for end consumers producer & traders
PRICE INDEX ? * IN INDIA WE USE---------????? CPI / WPI * WE USE BECAUSE---------
WEIGHTAGE TO CPI & WPI
INFLATION WHAT IS IT ? HOW IT AFFECTS ECONOMY ? WHAT CAUSES INFLATION ? INFLATION SITUATION IN PAST FEW YEARS